Pension Funds Development and Its Impact on Economic Growth : The Moderating Effect of the Financial System

Among reforms undertaken in many developing countries it was assumed that pension funds strengthened the development of the financial system and thus economic growth. However, the study of the existing dynamic relationships between these realities and the empirical evidence remains limited. We propose the modelling and solution to the problems that limit this type of study through different specifications, including specifications that capture interactions and confirm the robustness of the contribution. We find that pension funds mitigate negative effects and that the positive effect of pension funds on growth is conditioned by the level of development of the financial system