Financial Development and Economic Growth: Views and Agenda
Financial Development and Economic Growth: Views and Agenda ArXiv ID: ssrn-604955 “View on arXiv” Authors: Unknown Abstract October 1996 A growing body of theoretical and empirical work would push even skeptics toward the belief that the development of financial markets and instit Keywords: Financial markets development, Financial institutions, Economic growth, Market liberalization, Financial sector reform, Macro Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 3.0/10 Quadrant: Philosophers Why: The paper synthesizes existing theoretical and empirical work, using primarily descriptive arguments and regression evidence without developing novel mathematical models or presenting backtest-ready code/data. The mathematics is light, focusing on conceptual relationships rather than dense equations, and the empirical work relies on cross-country comparisons that are foundational but not implementation-heavy. flowchart TD A["Research Goal: Impact of Financial Sector Development on Economic Growth"] --> B["Data/Inputs<br>Time-series & Cross-country data<br>Market Liberalization & Institutional Reform Metrics"] B --> C["Methodology<br>Empirical Regression Analysis<br>Causality Testing (Granger)"] C --> D["Computational Process<br>Estimate Growth Models<br>Control for Macro Factors<br>Test Financial Depth Indicators"] D --> E["Key Findings<br>1. Financial development leads growth<br>2. Market liberalization boosts efficiency<br>3. Institutional reform is critical<br>4. Causality runs from Finance to Growth"]