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Cited by 647Monetary Policy and Economic ImpactEconomic Growth and ProductivityEconomic Growth and Development

Is the relationship between financial development and economic growth monotonic? Evidence from a sample of middle-income countries

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Samargandi, Nahla, Fidrmuc, Jan, Ghosh, Sugata·2015·World Development
DOI 10.1016/j.worlddev.2014.11.010
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Crossref · 10.1016/j.worlddev.2014.11.010

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141 of 141 references verified0 citation errors · 0 not checkable

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  • Higher financial development may not exert a positive impact on economic growth unless a certain level of financial development is reached.

    “In particular, higher financial development may not exert a positive impact on economic growth unless a certain level of financial development is reached.”

    From How Does Financial Development Impact Economic Growth in Pakistan?: New Evidence from Threshold Model (2020) · cites this paper as Samargandi, Fidrmuc, & Ghosh, 2015

    The threshold-model results (B.2, page unavailable) say the opposite: increasing financial development generally enhances growth below the estimated threshold, while exceeding it undermines growth. The paper identifies an upper threshold beyond which the effect turns negative, not a minimum level that must be reached before the effect can be positive. (LLM, conf=0.90)

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  • Static panel models do not capture the dynamic nature of data, especially in economic growth.

    “We believe that the static model, which is used in previous analyses, does not capture the dynamic nature of data, especially in economic growth (Samargandi, Fidrmuc, & Ghosh, 2015).”

    From Does financial development matter for economic growth in the emerging markets? (2022) · cites this paper as Samargandi, Fidrmuc, & Ghosh, 2015

  • The relationship between financial development and economic growth is nonlinear for financial institutions, with a negative effect above a threshold.

    “The empirical findings suggest a nonlinear relationship between finance and growth and are to some degree in line with other studies that found finance contributing to economic growth up to a certain point after which it turns negative (Arcand et al., 2015; Cecchetti & Kharroubi, 2012; Samargandi et al., 2015; Shen & Lee, 2006).”

    From Financial development, economic growth and the role of fiscal policy during normal and stress times: Evidence for 26 EU countries (2024) · cites this paper as Samargandi et al., 2015

  • Samargandi, Fidrmuc, and Ghosh (2015) investigated 52 middle-income countries and found 0.92 as the financial development threshold value.

    “Likewise, Samargandi, , Fidrmuc, and Ghosh (2015) investigated 52 middle-income counties and found 0.92 as financial development threshold value.”

    From How Does Financial Development Impact Economic Growth in Pakistan?: New Evidence from Threshold Model (2020) · cites this paper as Samargandi, Fidrmuc, and Ghosh (2015)

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9 of the 150 references couldn’t be matched to a known paper.

Research works printed but not linked: 4

  1. [41]41. Demetriades, P. and Rousseau, P. L., (2011).The changing face of financial development. In MMF Conference, University of Birmingham.
  2. [63]63. Gurley, J.G. and Shaw, E.S., (1955). Financial Aspects of Economic Development. The American Economic Review, 45(4), 515-538.
  3. [64]64. Halicioglu Odedokun, M. (1989). The Effects of Systematic and Surprise Fiscal Policy Actions in a Developing Economy: Evidence from Nigeria. Eastern Africa Economic Review, 5(2), 122-132.
  4. [103]103. Pesaran, H. and Shin, Y., (1999). An Autoregressive Distributed Lag Modelling Approach to Cointegration in Econometrics and Economic Theory in the 20th Century, The Ragnar Frisch Centennial Symposium Cambridge University Press, chapter, 4, 371-413.

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Authors
Samargandi, N., Fidrmuc, J., & Ghosh, S.
Affiliations
  • King Abdulaziz University (SA)
  • Brunel University of London (GB)
ORCID
Samargandi, Nahla
Venue
World Development
Publisher
Elsevier BV
Published
2015-04
Volume
68
Pages
66-81
ISSN
0305-750X (ISSN-L)
DOI
10.1016/j.worlddev.2014.11.010
OpenAlex
W3123689740
Cited by
647
References
150
Citations by year
2026: 37 · 2025: 63 · 2024: 68 · 2023: 71 · 2022: 73 · 2021: 81 · 2020: 88 · 2019: 58 · 2018: 45 · 2017: 24 · 2016: 26 · 2015: 11 · 2014: 2
FWCI
53.86
Type
journal article
Language
en
Open access
Licence
www.elsevier.com/tdm/userlicense/1.0/ (tdm)
Locations
  • World Development (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • Brunel University Research Archive (BURA) (Brunel University London) (submittedVersion)
Funders
King Abdul Aziz University
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
  • Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
Keywords
financial development, economic growth, inverted U-shaped relationship, middle-income countries, threshold effects, short-run and long-run effects, financial intermediation

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