Stock Markets, Banks, and Growth: Correlation or Causality
نویسندگان
چکیده
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. Econometrically, the paper illustrates the differences that emerge from different panel procedures. 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. JEL Classification: G00; O16; F 36
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