Reexamining finance-growth nexus: a new literature survey

Abstract

The nexus between financial development and economic growth is a well-documented literature and it has continued to expand since the pioneer studies in the early 1990s. From this view point, the goal of this paper is to survey finance-growth literature. The results obtained from causality analyses are not uniformed across different countries or country groups, different measures of financial development, and different empirical methodologies. On the other hand, however, there is also evidence that results are not that much volatile once regression based empirical approaches are employed.