The aim of this paper is to investigate the causal relationship between financial development and economic growth in GCC countries for the period 1980-2010. To this end we use a multivariate vector autoregressive (VAR) framework by including investment as an additional variable to the finance...

Following Rajan and Zingales's (1998) pioneering study, many empirical studies have tested the differential growth effects of a country's financial development across various industries with different levels of dependence on external financing. To conduct this test, many researchers have used...

Evidence on the causality between finance and growth is largely inconclusive. In this study, a large cross-sectional data set of 74 economies for the period between 1975 and 2005 is examined. We summarise evidence from in-sample and out-of-sample causality tests based on rolling estimation...