Financial Development and Economic Growth: An Overview

December 1, 2000

Preview Citation

Format: Chicago

Mohsin S. Khan, and Abdelhak S Senhadji. Financial Development and Economic Growth: An Overview, (USA: International Monetary Fund, 2000) accessed November 17, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In recent years there has been substantial theoretical and empirical work on the role that financial markets play in fostering economic growth and development. This paper provides a selective review of the literature, as well as new empirical evidence on the relationship between financial development and economic growth for a large cross-section sample of countries. While the results indicate that the effect of financial development on growth is positive, the size of the effect varies with different indicators of financial development, estimation method, data frequency, and the functional form of the relationship.

Subject: Economic and financial statistics, Financial markets, Financial sector development, Financial statistics, Market capitalization, Securities markets, Stock markets

Keywords: Bond market capitalization, Financial development, Financial markets, Financial sector development, Financial statistics, Growth, Market capitalization, Market condition, Market imperfection, Market securities, Securities markets, Security market indicator, Stock markets, Sub-Saharan Africa, Time variation, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/209
Stock No:

WPIEA2092000
ISBN:

9781451874747
ISSN:

1018-5941

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