We conduct a meta-analysis of the literature of financial development and economic growth. We account for a large number of empirical studies and estimations that have been published in journal articles. We measure the degree of heterogeneity and indentify the causes of the observed differentiation. Among the most significant factors behind this heterogeneity is the choice of financial-variable proxies, the kind of data used as well as whether the relevant studies take into account the issue of endogeneity. Our results suggest that the empirical literature on the finance-growth nexus is not free from publication bias. Also, a genuine positive effect exists between financial development and economic growth.JEL Classification: C800, O400, G280

This study considers the effects of financial development on output in a panel cointegration framework, focusing on the implications of trade and financial openness. Our analysis indicates that after controlling for cross-sectional dependence the typical relationship between finance and output does not hold in the long-run. This relationship, however, is re-established once we account for economic openness. While trade openness emerges as more important for developing countries financial openness is more important for advanced economies. In the long-run, causality runs from financial development to output in the advanced economies, while in developing economies causality is bidirectional. There is no short-run causality between financial development and output, however.JEL: F36, F21, C23, O16, O19

This paper examines the existence of dynamic spillover effects across petroleum based commodities and among spot-futures volatilities, trading volume and open interest. Realized volatilities of spot-futures markets are used as inputs to estimate a VAR model following Diebold and Yilmaz (2014, 2015) and distinguish dynamic spillovers in total and net effects. Results reveal the existence of large and time-varying spillovers among the spot-futures volatilities and across petroleum-based commodities when examined pairwise. In addition, speculative pressures, as reflected by futures trading volume, and hedging pressures, as reflected by open interest, are shown to transmit large and persistent spillovers to the spot and futures volatilities of crude oil and heating oilgasoline markets, respectively.

Abstract:We examine the possible interactions of the financial cycle and fiscal position for G7 economies. We employ the innovative aggregate financial and fiscal stress indexes which are able to depict the perplexed nature of modern economies. A SVAR model is developed to investigate the effects of both financial and fiscal stress on key macroeconomic variables. The results, using two different identification methods, reveal that financial and fiscal shocks affect negatively the key macroeconomic variables. Additionally, there is a weak feedback effect from a financial shock to fiscal sector and vice versa.JEL Classification: E44, F47, G01

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