TY  - UNPD
A1  - Méndez, Lizethe
A1  - Ongena, Steven
T1  - "Finance and growth" re-loaded
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 504
N2  - We assess the relationship between finance and growth over the period 1980-2014. We estimate a cross-country growth regression for 48 countries during 20 periods of 15 years starting in 1980 (to 1995) and ending in 1999 (to 2014). We use OLS and IV estimations and we find that: 1) overall financial development had a positive effect on economic growth during all periods of our sample, i.e., we confirm that from 1980 to 2014 financial services provided by the various financial systems were significant (to various degrees) for firm creation, industrial expansion and economic growth; but that, 2) the structure of financial markets was particularly relevant for economic growth until the financial crisis; while 3) the structure of the banking sector played a major role since; and finally that, 4) the legal system is the primary determinant of the effectiveness of the overall financial system in facilitating innovation and growth in (almost) all of our sample period. Hence, overall our results suggest that the relationship between finance and growth matters but also that it varies over time in strength and in sector origination.
JEL Classification: O16, G16, G20.
T3  - CFS working paper series - 604 
KW  - financial structure
KW  - economic growth
KW  - financial development
Y1  - 2018
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/47399
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-473991
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3274345
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -