DESENVOLVIMENTOFINANCEIRO E CRESCIMENTO ECONÔMICO: Teoria eEvidência Empírica para os Estados Brasileiros(1995-2004)

This paper aims at analyzing the relationship between economic growth and financial development on theoretical and empirical grounds. We briefly review the arguments that support the existence or not of a positive and causal relation between these two variables, as well as the arguments that outline...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Jayme, Frederico Gonzaga, Missio, Fabricio J, Ana Maria H C deOliveira
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2011
Subjects
Economic growth
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Summary:This paper aims at analyzing the relationship between economic growth and financial development on theoretical and empirical grounds. We briefly review the arguments that support the existence or not of a positive and causal relation between these two variables, as well as the arguments that outline the role and influence of financial development upon the economy. Second, an empirical exercise was undertaken using data for the 26 Brazilian states and Distrito Federal (the Brazilian District, where the capital Brasília is located). We estimate quantile regression in order to show the impact of financial development on the dependent variable (the Gross State Product, GSP). We adopted two measures of financial development, one based in the work of King & Levine (1993) and the other in the work of Marques Jr. & Porto Jr. (2004). Empirical results suggest a positive relation between financial development and economic growth.(This abstract was borrowed from another version of this item.)