FINANCIAL DEVELOPMENT AND GROWTH: A PANEL SMOOTH REGRESSION APPROACH

Journal of Economic Development, 2010, vol. 35, issue 1, 15-33

Abstract: In this paper, we propose an original framework to determine the relative influence of series of variables on the linkage between financial development and economic growth. Based on panel threshold regression models, we establish country-specific and time-specific finance-growth coefficients for 71 countries, both developed and developing, from 1960 to 2004. The results show that inflation rate, ratio of government consumption, degree of openness to trade and financial development affect the non-linearity between financial development and growth, and have the greatest influence on the relationship of two variables.

Keywords: Panel Smooth Regression Models; Financial Development; Growth (search for similar items in EconPapers)
JEL-codes: C23 F43 O16 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.jed.or.kr/full-text/35-1/2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:35:y:2010:i:1:p:15-33

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from Chung-Ang Unviersity, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sung Y. Park ().