Finance and economic growth: new evidence from time series analysis (1961–2009)

Abstract

Using time series techniques that deal with the problem of cross-sectional dependence and relax the constraint that the slope parameters of the independent variables should be the same for all countries, we demonstrate that financial development does not have a significant influence upon economic growth.

Keywords:

• financial development
• economic growth
• panel time series
• cross-sectional dependence

JEL Classification:

• E44
• O16