Abstract
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 language | English |
|---|---|
| Pages (from-to) | 883-898 |
| Number of pages | 16 |
| Journal | Macroeconomic Dynamics |
| Volume | 18 |
| Issue number | 4 |
| Early online date | 28 Mar 2013 |
| DOIs | |
| Publication status | Published - Jun 2014 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Finance and Growth
- Endogenous Growth
- Uzawa Theorem
Fingerprint
Dive into the research topics of 'Finance and balanced growth'. Together they form a unique fingerprint.Research output
- 1 Working paper
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Finance and Balanced Growth
Trew, A. W., Jul 2010, (Centre for Dynamic Macroeconomic Analysis, Working Paper; no. 1012).Research output: Working paper
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