Financial Development and Economic Growth: an Empirical Investigation of the Role of Banks and Institutional Investors

[en] This paper gives a new light on the finance-growth nexus through the investigation of the role of institutional investors as providers of risk diversification in the process of economic growth. We make use of panel cointegration techniques to study the potential long run relationship between economic growth, banking development and institutional investors in 6 OECD countries. Our results highlight some heterogeneity in the long run relationship between financial development and growth. Institutional investors are shown to support long run economic growth in only 2 countries. We also report a negative long run relationship between both indicators of financial development.

Disciplines :

Quantitative methods in economics & management

Author, co-author :

Sougné, Danielle ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Gestion financière et consolidation

Cavenaile, Laurent

Language :

English

Title :

Financial Development and Economic Growth: an Empirical Investigation of the Role of Banks and Institutional Investors

Publication date :

May 2012

Journal title :

Applied Financial Economics

ISSN :

0960-3107

eISSN :

1466-4305

Publisher :

Routledge

Volume :

Issue :

Pages :

1719-1725

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 19 March 2012

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193 (37 by ULiège)

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1308 (22 by ULiège)

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