The finance-growth nexus. Market economies vs. transition countries.

Gerhard Fink, Peter Haiss, Hans Christian Mantler

Publication: Working/Discussion PaperWU Working Paper

Abstract

Applying a growth accounting framework and a wide range of static and dynamic panel data estimators on a panel covering 22 market economies and 11 transition countries over 1990-2001, we find a weak and fragile finance-growth link in market economies, but strong financial sectorinduced short-run growth effects in transition countries. The main growth effect hereby runs via the productivity channel. Parametric heterogeneity and financial structure seem to play a more important role than hitherto assumed: The financial sector and its different segments trigger different growth effects in different countries. (author's abstract)
Original languageEnglish
Place of PublicationVienna
PublisherEuropainstitut, WU Vienna University of Economics and Business
Publication statusPublished - 2005

Publication series

NameEI Working Papers / Europainstitut
No.64

WU Working Paper Series

  • EI Working Papers / Europainstitut

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