Pension Funds Development and Its Impact on Economic Growth: The Moderating Effect of the Financial System

20 Pages Posted: 4 Mar 2021

See all articles by Walter Morales

Walter Morales

Universidad Autónoma de Madrid - Faculty of Economic Science and Business Studies

Fernando Ubeda

Universidad Autónoma de Madrid - Department of Finance

Javier Barbero

Universidad Autónoma de Madrid

Date Written: December 29, 2017

Abstract

Among reforms undertaken in many developing countries it was assumed that pension funds strengthened the development of the financial system and thus economic growth. However, the study of the existing dynamic relationships between these realities and the empirical evidence remains limited. We propose the modelling and solution to the problems that limit this type of study through different specifications, including specifications that capture interactions and confirm the robustness of the contribution. We find that pension funds mitigate negative effects and that the positive effect of pension funds on growth is conditioned by the level of development of the financial system.

Keywords: pension funds; reforms; financial development; economic growth

JEL Classification: G230, O11, O160, F43

Suggested Citation

Morales, Walter and Ubeda, Fernando and Barbero, Javier, Pension Funds Development and Its Impact on Economic Growth: The Moderating Effect of the Financial System (December 29, 2017). Available at SSRN: https://ssrn.com/abstract=3771370 or http://dx.doi.org/10.2139/ssrn.3771370

Walter Morales (Contact Author)

Universidad Autónoma de Madrid - Faculty of Economic Science and Business Studies ( email )

Calle Francisco Tomás y Valiente, 5
Madrid, 28049
Spain

Fernando Ubeda

Universidad Autónoma de Madrid - Department of Finance ( email )

Calle Kelsen s/n
C/Kelsen, 1
Madrid, Madrid 28049
Spain

Javier Barbero

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

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