Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212325
Authors: 
Hasan, Iftekhar
Horvath, Roman
Mares, Jan
Year of Publication: 
2015
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 17/2015
Abstract: 
We examine the effect of finance on long-term economic growth using Bayesian model averaging to address model uncertainty in cross-country growth regressions. The literature largely focuses on financial indicators that assess the financial depth of banks and stock markets. We examine these indicators jointly with newly developed indicators that assess the stability and efficiency of financial markets. Once we subject the finance-growth regressions to model uncertainty, our results suggest that commonly used indicators of financial development are not robustly related to long-term growth. However, the findings from our global sample indicate that one newly developed indicator – the efficiency of financial intermediaries – is robustly related to long-term growth.
JEL: 
C11
G10
O40
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-060-6
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.