Stock Markets, Banks, and Growth: Panel Evidence
33 Pages Posted: 26 Jul 2002 Last revised: 1 Aug 2002
Date Written: July 2002
This paper investigates the impact of stock markets and banks on economic growth using a panel data set for the period 1976-98 and applying recent GMM techniques developed for dynamic panels. On balance, we find that stock markets and banks positively influence economic growth and these findings are not due to potential biases induced by simultaneity, omitted variables or unobserved country-specific effects.
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