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THE FINANCIAL DEVELOPMENT AND GROWTH NEXUS: A META‐ANALYSIS
Author(s) -
Arestis Philip,
Chortareas Georgios,
Magkonis Georgios
Publication year - 2015
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12086
Subject(s) - endogeneity , nexus (standard) , economics , econometrics , variable (mathematics) , meta analysis , macroeconomics , medicine , mathematical analysis , mathematics , computer science , embedded system
We conduct a meta‐analysis of the literature of financial development and economic growth. We cover a large number of empirical studies and estimations that have been published in journal articles. We measure the degree of heterogeneity and identify the causes of the observed differentiation. Among the most significant factors behind this heterogeneity is the choice of financial‐variable proxies, the kind of data used as well as whether a study takes into account the issue of endogeneity. Our results suggest that the empirical literature on the finance–growth nexus is not free from publication bias. Also, a genuine positive effect exists between financial development and economic growth.