Rajan and Zingales (2003) hypothesize that openness—trade and financial—is a crucial determinant of financial development. The main policy implication emerging from this hypothesis is that openness should be promoted as a means of facilitating economic growth through financial development....

Noting that “one size does not fit all” in the case of the finance–development (FD) relationship, a growing body of literature has recently focused on uncovering economic conditions under which financial development could be beneficial (detrimental) to economic development. We look into...

Noting that 'one size does not fit all' in the case of the finance-growth (FG) nexus, a growing body of literature has recently focused on uncovering economic conditions under which financial development could be beneficial (detrimental) to economic development. We look into these conditions by...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>This paper re-examines the long-run finance-growth nexus in sub-Saharan Africa (SSA) using data from 17 countries over the period 1975–2005. We apply error correction-based panel cointegration tests that take into account cross-sectional dependence among...</p>

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...

As the high external debt in Low Income Countries (LIC) is mainly caused by structural deficits and exogenous shocks, most LICs will be, in the short and medium term at least, dependent on subsidies from donors. During the previous 10 years donors have offered extensive debt relief to LIC within...

Ten years after the start of the transition process in Central and Eastern Europe there are still substantial weaknesses. Even though growth rates have recently been high in most countries the output is still below pre-transition levels and the countries still have great difficulties in reducing...

One of the main disadvantages of currency boards is the rule-based character of this system and the resulting inflexibility in case of shocks, a frequently recurring event in transition countries. Accordingly, central banks under currency board arrangements (CBA) are unable to respond to...