Luintel, Kul B.  ORCID: https://orcid.org/0000-0001-7430-3926, Khan, Mosahid, Leon-Gonzalez, Roberto and Li, Guangjie ORCID: https://orcid.org/0000-0002-8977-4146
2016.
Financial development, structure and growth: new data, method and results.
Journal of International Financial Markets, Institutions and Money
43
, pp. 95-112.
10.1016/j.intfin.2016.04.002
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Abstract
The existing weight of evidence suggests that financial structure (the classification of a financial system as bank-based versus market-based) is irrelevant for economic growth. This contradicts the common belief that the institutional structure of a financial system matters. We re-examine this issue using a novel dataset covering 69 countries over 1989-2011 in a Bayesian framework. Our results are conformable to the belief - a market-based system is relevant - with sizable economic effects for the high-income but not for the middle-and-low-income countries. Our findings provide a counterexample to the weight of evidence. We also identify a regime shift in 2008.
| Item Type: | Article |
|---|---|
| Date Type: | Publication |
| Status: | Published |
| Schools: | Schools > Business (Including Economics) |
| Subjects: | H Social Sciences > HG Finance |
| Uncontrolled Keywords: | Financial Structure; Economic Growth; Cointegration; Bayesian Model Averaging; Structural Breaks |
| Publisher: | Elsevier |
| ISSN: | 1042-4431 |
| Date of First Compliant Deposit: | 25 April 2016 |
| Date of Acceptance: | 2 April 2016 |
| Last Modified: | 06 Nov 2024 04:45 |
| URI: | https://orca.cardiff.ac.uk/id/eprint/89893 |
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