Does too much finance harm economic growth ?

  title={Does too much finance harm economic growth ?},
  author={Siong Hook Law},
This study provides new evidence on the relationship between finance and economic growth using an innovative dynamic panel threshold technique. The sample consists of 87 developed and developing countries. The empirical results indicate that there is a threshold effect in the finance–growth relationship. In particular, we find that the level of financial development is beneficial to growth only up to a certain threshold; beyond the threshold level further development of finance tends to… CONTINUE READING
Highly Cited
This paper has 21 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.


Publications citing this paper.


Publications referenced by this paper.
Showing 1-10 of 54 references

Remittances and banking sector breadth and depth: evidence from Mexico

  • A. Demirgüç-Kunt, E. L. Córdova, M.S.M. Pería, C. Woodruff
  • Journal of Development Economics
  • 2011
Highly Influential
5 Excerpts

Trade openness, capital inflows and financial development in developing countries

  • S. H. Law
  • International Economic Journal
  • 2009
Highly Influential
7 Excerpts

Financial system structure and economic growth: structure matters

  • O. E. Ergungor
  • International Review of Economics and Finance
  • 2008
Highly Influential
6 Excerpts

The political economy of financial development

  • S. Girma, A. Shortland
  • Oxford Economics Papers
  • 2008
Highly Influential
4 Excerpts

The effect of financial development on convergence: theory and evidence

  • P. Aghion, P. Howitt, D. Mayer-Foulkes
  • Quarterly Journal of Economics 120,
  • 2005
Highly Influential
8 Excerpts

Another look at the instrumental-variable estimation of error-components models

  • M. Arellano, O. Bover
  • Journal of Econometrics
  • 1995
Highly Influential
7 Excerpts

Similar Papers

Loading similar papers…