What Type of Finance Matters for Growth? Bayesian Model Averaging Evidence

• Tác giả: Iftekhar Hasan
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.9 Economic development and growth
• Thông tin xuất bản: Published by Oxford University Press on behalf of the World Bank, 2019
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 326241
• Chủ đề: 1. BANKING; 2. BAYESIAN MODEL; 3. FINANCIAL MARKETS; 4. PRIVATE SECTOR; 5. STOCK MARKETS

Tóm tắt

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.