Non linearity between finance and growth
|Title||Non linearity between finance and growth|
|Publication Type||Working Paper|
|Year of Publication||2001|
|Authors||Deidda, LG, Fattouh, B|
|Keywords||economic de- velopment, economic growth, financial development, threshold regression**|
We present a simple model which establishes a non linear and possibly non monotonic relationship between financial development and economic growth. Applying a threshold regression model to King and Levine™s (1993) data set, we find evidence that is consistent with the main implications stemming from the theoretical model.