Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?

It is well established in the literature that financial development (FD) is conducive to growth, and yet the channels through which FD affects growth are not well understood. Using a unique new panel data set for 21 OECD countries over the past 140 years, this paper examines the extent to which FD t...

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Main Authors:	Madsen, Jakob B., Ang, James B.
Other Authors:	School of Humanities and Social Sciences
Format:	Article
Language:	English
Published:	2016
Subjects:	financial development productivity growth
Online Access:	https://hdl.handle.net/10356/84701 http://hdl.handle.net/10220/41914
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Institution:	Nanyang Technological University
Language:	English

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spelling	sg-ntu-dr.10356-847012020-03-07T12:10:38Z Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth? Madsen, Jakob B. Ang, James B. School of Humanities and Social Sciences financial development productivity growth It is well established in the literature that financial development (FD) is conducive to growth, and yet the channels through which FD affects growth are not well understood. Using a unique new panel data set for 21 OECD countries over the past 140 years, this paper examines the extent to which FD transmits to growth through ideas production, savings, fixed investment, and schooling. Unionization and agricultural share are used as instruments for FD. The empirical results show that FD influences growth through all four channels. In particular, ideas production is found to be the most important channel through which FD affects growth. Published version 2016-12-21T05:49:57Z 2019-12-06T15:49:48Z 2016-12-21T05:49:57Z 2019-12-06T15:49:48Z 2016 Journal Article Madsen, J. B., & Ang, J. B. (2016). Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth? Review of Economics and Statistics, 98(3), 552-572. 0034-6535 https://hdl.handle.net/10356/84701 http://hdl.handle.net/10220/41914 10.1162/REST_a_00513 en Review of Economics and Statistics © 2016 the President and Fellows of Harvard College and the Massachusetts Institute of Technology. This paper was published in Review of Economics and Statistics and is made available as an electronic reprint (preprint) with permission of the President and Fellows of Harvard College and the Massachusetts Institute of Technology. The published version is available at: [http://dx.doi.org/10.1162/REST_a_00513]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law. 21 p. application/pdf
institution	Nanyang Technological University
building	NTU Library
country	Singapore
collection	DR-NTU
language	English
topic	financial development productivity growth
spellingShingle	financial development productivity growth Madsen, Jakob B. Ang, James B. Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
description	It is well established in the literature that financial development (FD) is conducive to growth, and yet the channels through which FD affects growth are not well understood. Using a unique new panel data set for 21 OECD countries over the past 140 years, this paper examines the extent to which FD transmits to growth through ideas production, savings, fixed investment, and schooling. Unionization and agricultural share are used as instruments for FD. The empirical results show that FD influences growth through all four channels. In particular, ideas production is found to be the most important channel through which FD affects growth.
author2	School of Humanities and Social Sciences
author_facet	School of Humanities and Social Sciences Madsen, Jakob B. Ang, James B.
format	Article
author	Madsen, Jakob B. Ang, James B.
author_sort	Madsen, Jakob B.
title	Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
title_short	Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
title_full	Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
title_fullStr	Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
title_full_unstemmed	Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?
title_sort	finance-led growth in the oecd since the nineteenth century: how does financial development transmit to growth?
publishDate	2016
url	https://hdl.handle.net/10356/84701 http://hdl.handle.net/10220/41914
_version_	1681045303976787968

Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?

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