nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2013‒09‒24
four papers chosen by
Iulia Igescu
Global Insight, GmbH

  1. On the optimal control of pollution in a human capital growth model By Stefano Bosi; Lionel Ragot
  2. The Effect of Globalization in an Endogenous Growth Model with Heterogeneous Firms and Endogenous International Spillovers: Note By Katsufumi Fukuda
  3. Financial liberalization, financial development and productivity growth: An overview By Gehringer, Agnieszka
  4. Capital Account Liberalization and Economic Growth in Developing Economies: An Empirical Investigation By Soumia Zenasni; Abderrezak Benhabib

  1. By: Stefano Bosi; Lionel Ragot
    Abstract: On the one hand, the adoption of polluting technologies can enhance the factor productivity; on the other hand, pollution lowers the stock of human capital by weakening physical and mental performances, and short-ening the life expectancy at the end. To capture the impact of pollution on economic growth, we compute the optimal policy in an endogenous growth model `a la Lucas (1988) and we study the effects of pollution in the short and the long run.
    Keywords: pollution, human capital, endogenous growth
    JEL: D90 J24
    Date: 2013
  2. By: Katsufumi Fukuda (Graduate School of Economics, Kobe University, JAPAN)
    Abstract: This paper shows that globalization increases (decreases) the growth rate if and only if the beachhead cost for the domestic market is strictly higher (lower) than that for the foreign market in a endogenous growth model with firm heterogeneity, international trade, and endogenous international spillover under specified necessary and sufficient conditions for exporting firms being more productive than non-exporting firms.
    Keywords: heterogeneous firms, endogenous international spillovers, endogenous growth theory
    JEL: F12 F15 O30 O33
    Date: 2013–08
  3. By: Gehringer, Agnieszka
    Abstract: The paper surveys the literature on the effects of finance on productivity growth. In both the theoretical and empirical literature, there is no consensus regarding the contribution of financial liberalization and financial development to growth. Focusing on the direct channels of growth, the author has found both positive and negative contribution of finance to growth. Clearer positive effects emerge when considering growth channels related to productivity dynamics, with the estimated effects being positive and statistically distinguishable from zero. --
    Keywords: FDI,financial liberalization,financial development,productivity,growth,review
    JEL: F32 F33 F36
    Date: 2013
  4. By: Soumia Zenasni (University of Tlemcen, Algeria); Abderrezak Benhabib (University of Tlemcen, Algeria)
    Abstract: The objective of this paper is to investigate the empirical relationship between capital account liberalization and economic growth in three Maghreb countries (Algeria, Mo- rocco, and Tunisia) using the GMM technique. The study of this relationship has al- ways been of particular interest (Alesina and al 1994; De Gregorio 1996; Edwards 2001; Agénor 2001; Ishii and Habermeier 2002; Prasad and al. 2003; Buiter and Taci 2003; Henry 2007; Dhrifi 2009; Eichengreen, Gullapalli and Panizza 2009; Bakare A. S. 2011; Vithessonthi and Tongurai 2012). The results are mitigated and can be classified into two categories: negative and positive effects. As a matter of fact, some authors have showed that capital account liberalization hasn't a significant effect on economic growth (Grilli and Milesi-Ferretti 1995; Rodrick 1998; Kraay 1998; O'Donnell 2001; Edison and al. 2002). On the contrary, several theoretical and empirical studies assert that capital account liberalization can help countries to improve significantly their eco- nomic growth rate (Gurley and Shaw 1955, McKinnon 1973; Quinn 1997; Levine and Zervos 1998; Chan-Lau and Chen 2001; Bekaert and al. 2005; Levchenko and al. 2008; Mensi and al. 2010, Hassana, Sanchezb & Yu 2011). The estimation results show that capital account liberalization is a good factor in fostering economic growth in Maghreb countries.
    Keywords: capital account liberalization, financial development, economic growth, Maghreb countries, GMM technique
    JEL: E44 G20 F43 C33
    Date: 2013–08–22

This nep-fdg issue is ©2013 by Iulia Igescu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.