What Type of Finance Matters for Growth? : Bayesian Model Averaging Evidence

Hasan, Iftekhar ; Horvath, Roman ; Mares, Jan

World Bank, Washington, DC

关键词: FINANCIAL INNOVATION;    ECONOMIC GROWTH;    EQUIPMENT;    TRADE CREDIT;    CHECKS;   

DOI  :  10.1596/1813-9450-7645
RP-ID  :  WPS7645

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the effect offinance on long-term economic growth using Bayesian modelaveraging to address model uncertainty in cross-countrygrowth regressions. The literature largely focuses onfinancial indicators that assess the financial depth ofbanks and stock markets. These indicators are examinedjointly with newly developed indicators that assess thestability and efficiency of financial markets. Once thefinance-growth regressions are subjected to modeluncertainty,the results suggest that commonly usedindicators of financial development are not robustly relatedto long-term growth. However, the findings from the globalsample indicate that one newly developed indicator -- theefficiency of financial intermediaries -- is robustlyrelated to long-term growth.