Revisiting the nexus of the financial development and economic development : new international evidence using a wavelet approach

• This study investigates Granger causality and instantaneous causality between financial development and economic development for 76 economies of four different income levels. The main novelty of the study is that it fills a gap in existing studies on the relationship between financial development and economic development by employing wavelet analysis, which enables us to study the varying time-scale relationships of the variables. Among the findings is that at the scale of 4-8 years it is more common for financial development and economic development to support each other once a country achieves at least lower-middle-income status.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Financial development

Economic development

Economic growth

Causality

Time scales

Wavelet decomposition

Economics

Nationalekonomi

Publication and Content Type

ref (subject category)

art (subject category)