Finance and balanced growth

Alex William Trew

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)


    We study the relationships between various concepts of financial development and balanced economic growth. A model of endogenous growth that incorporates roles for both financial efficiency and access to financial services permits a better understanding of the relationship between the size of the financial sector (value added) and growth. Higher financial value added results from some, but not all, kinds of finance-driven growth. If greater access rather than greater efficiency generates higher growth, then value added and growth can be positively correlated. We present some preliminary empirical results that support the importance of access alongside efficiency in explaining cross-country variations in growth.
    Original languageEnglish
    Pages (from-to)883-898
    Number of pages16
    JournalMacroeconomic Dynamics
    Issue number4
    Early online date28 Mar 2013
    Publication statusPublished - Jun 2014


    • Finance and Growth
    • Endogenous Growth
    • Uzawa Theorem


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