A nonparametric model of financial system and economic growth
نویسندگان
چکیده
Article history: Received 5 October 2013 Received in revised form 25 March 2015 Accepted 7 April 2015 Available online 14 April 2015 In this paper, we show that in the proposedmodels for economic growth, thefinancial systemvariables are generally nonparametric. We, thus, use a nonparametric panel data model to estimate the financial system–economic growth relationship. Our results suggest that as long as a country's domestic credit and private credit are above their cross-sectional mean they have a positive effect on GDP growth. We also discover that market capitalisation positively and significantly impacts GDP growth, while stocks traded (with the exception of OECD countries) has a statistically insignificant effect on GDP growth. © 2015 Elsevier Inc. All rights reserved.
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