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Finance and Growth: A Critical Survey *
Author(s) -
TREW ALEX
Publication year - 2006
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2006.00361.x
Subject(s) - nexus (standard) , economics , interpretation (philosophy) , core (optical fiber) , positive economics , empirical evidence , econometrics , financial economics , epistemology , philosophy , materials science , computer science , embedded system , composite material , programming language
We present a survey of the finance‐growth nexus that raises a number of qualifications to the standard interpretation. We investigate doubts regarding empirical consensus and we consider the prevalence of cross‐section econometrics as dominant in shaping the present theoretical consensus. The core implications of many finance and growth theories are shown to be disconnected not only from their modern empirical counterparts, but also from the historical literature.