To clarify the causal links between financial activity and economic growth, three theoretical models are analyzed and a structural equation path models is estimated. In the modeling part, poverty traps result from large fixed costs or high proportions of real investment to run a financial...

This paper investigated the long run relationship between financial development and economic growth in South Korea using a four-variable Vector Autoregressive (VAR) model using time series data from 1961 to 2013. Applying unit root tests and co-integration analysis, the study revealed that real...

This paper attempts to reconcile the apparent contradiction between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private...