Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Financial structure and economic growth

Luintel, Kul ORCID:, Khan, Mosahid, Arestis, Philip and Theodoridis, Konstantinos ORCID: 2008. Financial structure and economic growth. Journal of Development Economics 86 (1) , pp. 181-200. 10.1016/j.jdeveco.2007.11.006

[thumbnail of E2008_3.pdf]
PDF - Accepted Post-Print Version
Download (1MB) | Preview


Recent empirical work on financial structure and economic growth analyzes multi-country dataset in panel and/or cross-section frameworks and concludes that financial structure is irrelevant. We highlight their shortcomings and re-examine this issue utilizing a time series and a Dynamic Heterogeneous Panel methods. Our sample consists of fourteen countries. Tests reveal that cross-country data cannot be pooled. Financial structure significantly explains output levels in most countries. The results are rigorously scrutinized through bootstrap exercises and they are robust to extensive sensitivity tests. We also test for several hypotheses about the prospective role of financial structure and financial development on economic growth.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Uncontrolled Keywords: Financial structure; Economic growth; Co-integration; Bootstrap; Dynamic heterogeneous panels
Publisher: Elsevier
ISSN: 0304-3878
Date of First Compliant Deposit: 16 October 2018
Last Modified: 07 Nov 2023 07:09

Citation Data

Cited 75 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item


Downloads per month over past year

View more statistics