The Relationship between Financial Development and Economic Growth Based on Dynamic Panel Data Approach in selected countries (1979-2003)

نوع مقاله : پژوهشی

نویسندگان

مهر ارا مهر ارا

طلاکش نایینی طلاکش نایینی

https://doi.org/10.22067/pm.v16i26.1961

چکیده

This paper investigates empirically the relationship between development of the financial system and economic performance using a panel data set for 40 countries during the period 1979-2003 based on recent generalized-method-of moments technique developed for dynamic panels. The impact on GDP level and GDP growth of stock markets and banks is distinguished. Results show that the bank credits as a proxy for the banking system development have a positive and significant effect on the GDP level in the long-run, but there is no significant relationship among financial development proxies and GDP growth.

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