Pension Funds Development and Its Impact on Economic Growth: The Moderating Effect of the Financial System
20 Pages Posted: 4 Mar 2021
Date Written: December 29, 2017
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: Suggested Citation