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King R.G., Levine R, “Finance; entrepreneurship and growth: Theory and evidence.” Journal of monetary Economics 32: 513-542. 1993a.

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Article

Financial Development and Economic Growth: A Dynamic Panel Data Analysis

1PhD in Economic Sciences, Unit of Research PS2D Prospective Strategy and Sustainable Development, Faculty of Economic Sciences and Management of Tunis; Campus Universitaire El Manar II, Tunis


International Journal of Econometrics and Financial Management. 2014, Vol. 2 No. 2, 48-58
DOI: 10.12691/ijefm-2-2-1
Copyright © 2014 Science and Education Publishing

Cite this paper:
Khalil Mhadhbi. Financial Development and Economic Growth: A Dynamic Panel Data Analysis. International Journal of Econometrics and Financial Management. 2014; 2(2):48-58. doi: 10.12691/ijefm-2-2-1.

Correspondence to: Khalil  Mhadhbi, PhD in Economic Sciences, Unit of Research PS2D Prospective Strategy and Sustainable Development, Faculty of Economic Sciences and Management of Tunis; Campus Universitaire El Manar II, Tunis. Email: k_mhadebi@yahoo.fr

Abstract

This paper re-examines the empirical relationship between financial development and economic growth. The data cover the regressions according to the maximum of 110 countries and at least 10. It includes developing and developed countries. The study period extends from 1973 to 2012. Imports results obtained using the Generalized Method of Moments dynamic panel show that the variable that influence a significant and positive economic growth, whatever the sample is the variable that reflects the level of availability of the banking system. Contrary to that extent the credits granted by the financial system to the private sector, even if significant, has a negative influence on growth. Finally, the measure that reflects the financial deepening of the economy seems to depend positively on economic growth for developing countries and negatively for developed country.

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