Does financialization retard growth? Time series and cross-sectional evidence

Moosa, I 2018, 'Does financialization retard growth? Time series and cross-sectional evidence', Applied Economics, vol. 50, no. 31, pp. 3405-3415.


Document type: Journal Article
Collection: Journal Articles

Title Does financialization retard growth? Time series and cross-sectional evidence
Author(s) Moosa, I
Year 2018
Journal name Applied Economics
Volume number 50
Issue number 31
Start page 3405
End page 3415
Total pages 11
Publisher Routledge
Abstract © 2017 Informa UK Limited, trading as Taylor & Francis Group Although financial development is essential for economic development, excessive financialization of the economy is believed to exert a negative effect on output growth. In this article, empirical evidence is presented on the relation between economic growth and financialization as measured by the ratio of credit to GDP and the ratio of publicly traded shares to GDP. The empirical results are based on annual time series data for six country groups as well as cross-sectional data covering a large number of countries. The model is initially specified with unobserved components and estimated in a time-varying parametric framework to account for missing variables. Thereafter, the issue of linear versus quadratic specifications is examined. The results are robust with respect to model specification, estimation method, data type and variable definition, showing in general that financialization has a negative impact on growth. Some evidence is also presented to support the notion of the financial Kuznets curve.
Subject Financial Economics
Keyword(s) Dutch disease
economic growth
financial development
financial Kuznets curve
Financialization
DOI - identifier 10.1080/00036846.2017.1420899
ISSN 0003-6846
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in Thomson Reuters Web of Science Article
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 24 Abstract Views  -  Detailed Statistics
Created: Wed, 19 Sep 2018, 13:27:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us