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This Selected Issues paper and Statistical Appendix summarizes the factors explaining Vanuatu’s recent growth … performance, which has weakened since the mid-1990s. The paper highlights that Vanuatu’s annual rate of growth averaged 3 …⁄4 percent during 1997–2001, compared with 43⁄4 percent during 1992–1996. The paper compares Vanuatu’s external competitiveness …
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This paper investigates the causes of the "vanishing effect of finance" detected in recent studies. The results highlight that the negative effect of the financial system on growth is mainly driven by advanced economies, whereas finance is still beneficial for income increases in developing...
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Does the financial sector contribute to economic growth? While most of the studies carried out before the Financial crisis tend to answer the question with “yes”, recent empirical work provides evidence that the opposite is true. We study these new findings in detail, applying GMM and 3SLS...
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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...
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