Non-Linear Growth Effects of Financial Development: Does Financial Integration Matter?

An Empirical Analysis of Stock Market Development and Economic Growth: The Case of Macedonia

“…At the same time, Mehl, Vespro and Windler (2006) found that financial deepening had no significant effects on the growth of South-Eastern European countries for the period 1993-2003. Other relevant studies include Masten, Coricelli and Masten (2008), who investigated the relationship between financial integration and economic growth in a sample of European countries for the period 1996-2004, and Eller, Haiss, and Steiner (2006, who examined the impact of financial sector and foreign direct investment on economic growth for 11 Central and Eastern European countries in the period 1996-2003.…”

Financial Development and Economic Growth: Known Knowns, Known Unknowns, and Unknown Unknowns

“…Masten et al (2008) concentrate on European advanced and transition economies and find a strong growth effect of financial depth in transition economies but no effect in the more advanced EU countries. These authors suggest that while financial deepening may be helpful for transition economies with a relatively small financial sector, the process of financial deepening is no longer necessary for advanced economies in the European Union.…”

The effect of remittances prior to an election

“…A new variable ݀ ,௧ ோ , in interaction with the election dummy variable was specified; ݀ ,௧ ோ is equal to 1 if the country has a remittance ratio greater than ܴ * and 0 otherwise. This methodology for threshold determination in the case of endogenous regressors under a dynamic panel data framework has previously been implemented by Masten et al (2008) and Chami et al (2009). 8 The following equation is specified:…”