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

Fink, Gerhard and Haiss, Peter and Mantler, Hans Christian (2005) The finance-growth nexus. Market economies vs. transition countries. EI Working Papers / Europainstitut, 64. Europainstitut, WU Vienna University of Economics and Business, Vienna.


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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)

Item Type: Paper
Keywords: financial sector / economic growth / transition economies / market economies
Classification Codes: JEL G10, G21, O11, O16
Divisions: Forschungsinstitute > Europafragen
Depositing User: Repository Administrator
Date Deposited: 23 Mar 2005 14:10
Last Modified: 22 Oct 2019 00:41


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