The present paper investigates whether the link between stock markets, banks, and economic growth becomes more evident as more homogeneous groups of countries are considered. The issue of fundamental importance in this study is the extent to which the role of financial intermediaries and markets in economic growth across countries can be measured in terms of a degree of homogeneity controlling for the endogeneity problem. The dynamic panel generalized method of moment (GMM) estimator is employed using data of European and non-European high-income countries as well as upper and lower middle-income countries averaged over five and three years. Our results indicate that the growth effects of banks and stock markets differ for various groups of economies, implying that the link between financial development and economic growth depends on the stages of economic growth of the countries. As more homogeneous economies are involved in a panel, a more economically stylized link is uncovered.
Keywords: Economic growth; stock market development; financial development; homogeneous panel; GMM
JEL Classification: G10, G21, O16, O40.
학회소식
[2016년 제 4차] Stock Markets, Banks, and Economic Growth: Evidence from More Homogenous Panels
작성자 : 관리자
조회수 : 851
게시일 :
2016-12-21
