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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractRecent empirical work on financial structure and economic growth analyzes multicountry dataset in panel and/or cross-section frameworks and conclude that financial structure is irrelevant. We highlight their shortcomings and re-examine this issue utilizing a time series and a dynamic heterogeneous panel methods. Our sample consists of fourteen countries. Tests reveal that cross-country data cannot be pooled. Financial structure significantly explains output levels in most countries. The results are rigorously scrutinized through bootstrap exercises and they are robust to extensive sensitivity tests. We also test for several hypotheses about the prospective role of financial structure and financial development on economic growth. We would like to thank an anonymous referee and Lant Pritchett (Co-editor) for their constructive suggestions. We also thank Ambika Luintel for her valuable help at the early stage of this paper. The views expressed are those of the authors and do not implicate any institution. The usual disclaimer applies.

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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