economic growth; institutional investors; banking development
Abstract :
[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
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