Abstract
We conduct a meta-analysis of the literature of financial development and economic growth. We cover a large number of empirical studies and estimations that have been published in journal articles. We measure the degree of heterogeneity and identify the causes of the observed differentiation. Among the most significant factors behind this heterogeneity is the choice of financialvariable proxies, the kind of data used as well as whether a study takes into account the issue of endogeneity. Our results suggest that the empirical literature on the finance–growth nexus is not free from publication bias. Also, a genuine positive effect exists between financial development and economic growth.
| Original language | English |
|---|---|
| Pages (from-to) | 549-565 |
| Number of pages | 17 |
| Journal | Journal of Economic Surveys |
| Volume | 29 |
| Issue number | 3 |
| Early online date | 27 Aug 2014 |
| DOIs | |
| Publication status | Published - 11 Jun 2015 |
Keywords
- financial development
- growth
- meta-analysis
Access to Document
- MAGKONIS_2015_cright_The Financial Development and Growth Nexus
This is the peer reviewed version of the following article: Arestis, P., Chortareas, G. and Magkonis, G. (2015), The Financial Development and Growth Nexua: a meta-analysis. Journal of Economic Surveys, 29: 549–565. , which has been published in final form at DOI: 10.1111/joes.12086. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.