This paper contributes to the empirical literature by investigating the impact of private capital inflows on economic growth across former Soviet-bloc countries between 1990 and 2015. Roles of the stock market and of demand-side macroeconomic policy are investigated using panel data analysis....

The new growth literature, using both endogenous growth and neoclassical models, has generated strong claims for the effect of national policies on economic growth. Empirical work on policies and growth has tended to confirm these claims. This paper casts doubt on this claim for strong effects...

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...