Utilizing time series methods and data from five developed economies, we examine the relationship between stock market development economic growth, controlling for effects of banking system volatility. Our results support view that, although both banks markets may be able to promote erects former are more powerful. They also suggest that contribution on growth have been exaggerated by studies utilize cross-country regressions.

In this paper we take a fresh look at the empirical evidence on relationship between financial development and economic growth with view to identifying outstanding issues offering some suggestions about how these may be addressed in future. To illustrate our also present new utilising proposed approaches. We examine literature from two angles. The first is issue of whether, what extent system can contribute process growth. Questions association amongst deepening, investment, efficiency...

Using data from 72 countries for the period 1978–2000, we find that financial development has larger effects on GDP per capita when system is embedded within a sound institutional framework. Moreover, most potent in middle-income countries, where its are particularly large quality high. Importantly, also low-income influence of at weakest; these more finance without institutions may not succeed delivering long-run economic benefits. Copyright © 2006 John Wiley & Sons, Ltd.

Journal Article Intertemporal Output and Employment Effects of Public Infrastructure Capital: Evidence from 12 OECD Economies Get access P. O. Demetriades, Demetriades University Leicester Search for other works by this author on: Oxford Academic Google Scholar T. Mamuneas Cyprus The Economic Journal, Volume 110, Issue 465, July 2000, Pages 687–712, https://doi.org/10.1111/1468-0297.00561 Published: 25 December 2001

Journal Article Financial Development, Economic Growth and Banking Sector Controls: Evidence from India Get access Panicos O. Demetriades, Demetriades Keele University Search for other works by this author on: Oxford Academic Google Scholar Kul B. Luintel of Loughborough The Journal, Volume 106, Issue 435, 1 March 1996, Pages 359–374, https://doi.org/10.2307/2235252 Published: 01 1996

We introduce infrastructure as a cost‐reducing technology in Romer's (1987) model of endogenous growth. show that can promote specialization and long‐run growth, even though its effect on the latter is non‐monotonic, reflecting resource costs. provide evidence using data from U.S. Census Manufactures suggests degree positively correlated with core infrastructure, predicted by model. also cross‐country regressions, physical measures provision, shows robust non‐monotonic relationship between JEL...

This paper provides evidence that suggests financial repression has substantial direct effects on development, independently of its well-known influence through the level real interest rate. It also demonstrates process economic growth is not weakly exogenous with respect to development. Thus may impose costs are additional those suggested by previous empirical studies.

We present new cross‐country evidence that reveals during 1995–2007, government ownership of banks has been robustly associated with higher long‐run growth rates. also show previous results suggesting is lower rates are not robust to conditioning on more ‘fundamental’ determinants economic growth.

Abstract We collect data on a number of financial restraints, including restrictions deposit and lending interest rates reserve liquidity requirements, from central banks six developing countries. estimate the effects these policies development, controlling for effect economic development using standard econometric techniques. find that vary considerably across our sample Our findings demonstrate liberalisation is much more complex process than has been assumed by earlier literature its are...

Abstract. Modelling infrastructure as an international public good in a two‐country model of trade where each country's social planner behaves strategically, we show that, general, the equilibrium levels are not optimal from global perspective. Utilizing appropriate econometric framework and data 16 European countries over period 1987–95, find evidence that is consistent with predictions our model. JEL Classification: F10, F42, H42 Aspects internationaux de l’investissement dans les...

Utilising four annual panel datasets and dynamic data estimation procedures we find that trade financial openness, as well economic institutions are statistically important determinants of the variation in development across countries over time since 1980s. However, mixed support for hypothesis simultaneous opening both capital accounts is necessary to promote a contemporary setting.

Using a new West African panel data set, we provide evidence on the determinants of individual banks' loans and assets in some poorest countries world. Higher loan default rates reduce both to ratio volume assets. However, size these effects is sensitive bank age ownership structure. Younger, private, domestically owned banks are most affected, suggesting that such face severe informational disadvantages. Very old government‐owned benefit from high rates. We also explore how quality...

Abstract We put forward a plausible explanation of African banking sector under‐development in the form bad credit market equilibrium. Using an appropriately modified Industrial Organization model banking, we show that root problem could be unchecked moral hazard (strategic loan defaults) or adverse selection (a lack good projects). Applying dynamic panel estimator to large sample banks, defaults are major factor inhibiting bank lending when institutional quality is low. also find once...