The financial development and growth nexus: a meta-analysis

Philip Arestis, Georgios Chortareas, Georgios Magkonis

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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 languageEnglish
Pages (from-to)549-565
Number of pages17
JournalJournal of Economic Surveys
Issue number3
Early online date27 Aug 2014
Publication statusPublished - 11 Jun 2015


  • financial development
  • growth
  • meta-analysis


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