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on Financial Development and Growth |
| By: | Karen Davtyan (Faculty of Economics, University of Barcelona) |
| Abstract: | The interrelation among economic growth, income inequality, and fiscal performance is very complex. The paper provides the analysis of the interrelations among these variables jointly by the structural VAR methodology, examining also transmission channels among them. This approach allows exploring dynamic interactions among them and feedback effects on each other. The empirical analysis is implemented for the Anglo-Saxon countries, the UK, the USA, and Canada. We find that income inequality has negative effect on economic growth in the case of the UK. The effect is positive in the cases of the USA and Canada. The increase in income inequality worsens fiscal performance for all the countries. |
| Keywords: | economic growth, income inequality, fiscal performance, VAR JEL classification: C32, D31, E62, O47 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201403&r=fdg |
| By: | Malcolm Sawyer (University of Leeds) |
| Abstract: | The paper reviews the theoretical arguments which have been advanced on the relationships between economic growth and growth of the financial sector. This is followed by a similar discussion on financial repression and financial liberalisation. Growth of the financial sector and de-regulation are considered as two important features of financialisation. The differences between bank-based and market based financial systems are briefly explored as is the question of whether the financial sector is now too large. The paper is completed by overviews of the empirical results on the relationship between growth of the financial sector and economic growth and on financial liberalisation. |
| Keywords: | financial development, financial liberalisation, financial repression, financialisation |
| JEL: | G01 G18 G20 |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:fes:wpaper:wpaper21&r=fdg |
| By: | Crafts, Nicholas (University of Warwick); O’Rourke Hjortshøj, Kevin (All Souls College, Oxford) |
| Abstract: | This paper surveys the experience of economic growth in the 20th century with a focus on technological change at the frontier together with issues related to success and failure in catch-up growth. A detailed account of growth performance based on historical national accounts data is given and is accompanied by a review of growth accounting evidence on the sources of economic growth. The key features of our analysis of divergence in growth outcomes are an emphasis on the importance of ‘directed’ technical change, of institutional quality, and of geography. We provide brief case studies of the experience of individual countries to illustrate these points. |
| Keywords: | catch-up growth; divergence; growth accounting; technical change |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:153&r=fdg |
| By: | Rafael González-Val (Universidad de Zaragoza & IEB) |
| Abstract: | This paper analyses the growth of American cities, understood as the growth of the population or of the per capita income, from 1990 to 2000. This empirical analysis uses data from all the cities (incorporated places) with more than 25,000 inhabitants in the year 2000 (1152 cities). The results show that while common convergence behaviour is observed in both population and per capita income growth, there are differences in the evolution of the distributions: the population distribution remains almost unchanged, while the per capita income distribution makes a great movement to the right. We use two different methodologies to test cross-sectional convergence across cities: linear growth models (allowing for spatial spillovers between locations) and spatial quantile regressions. We find evidence of significant spatial effects and non-linear behaviour. |
| Keywords: | City growth, linear model, spatial lag model, spatial error model, spatial quantile regression |
| JEL: | R00 R11 R12 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2014-17&r=fdg |