Research Repository

Does financial development 'lead' economic growth?

Shan, Jordan and Morris, Alan G (2002) Does financial development 'lead' economic growth? International review of applied economics, 16 (2). pp. 153-168. ISSN 1465-3486 Online 0269-2171 Print

Full text for this resource is not available from the Research Repository.


We use the Toda & Yamamoto (1995) causality testing procedure to investigate the relationship, if any, between financial development and economic growth.We use quarterly data from 19 OECD countries and China, and use total credit and interest spread as indicators of financial development. We also consider the impact of financial development on investment and productivity. We find meagre evidence that financial development 'leads' economic growth, either directly or indirectly. This casts further doubt on claims that financial development is a necessary and perhaps sufficient precursor to economic growth.

Item Type: Article
Uncontrolled Keywords: financial, international economic
Subjects: Historical > RFCD Classification > 340000 Economics
Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Depositing User: Ms Phung T Tran
Date Deposited: 24 Oct 2008 14:24
Last Modified: 02 Jul 2009 01:56
ePrint Statistics: View download statistics for this item
Citations in Scopus: 47 - View on Scopus

Repository staff only

View Item View Item

Search Google Scholar