Do financial systems spur economic growth in the USA? An empirical investigation
Sheilla Nyasha and
Nicholas Odhiambo
No 18833, Working Papers from University of South Africa, Department of Economics
Abstract:
In this paper, we use the autoregressive distributed lag (ARDL) bounds testing approach to examine thedynamic impact of both bank-based financial development and market-based financial development oneconomic growth in the United States of America (USA) during the period 1980 to 2012. In order toadequately capture the depth and width of the USA?s financial system, we used both bank-based andmarket-based financial development indices as proxies for bank-based and market-based financialsystems. These indices were constructed from a number of bank- and market-based financialdevelopment indicators, using the method of means-removed average. Our empirical results reveal thatboth bank-based and market-based financial development have a positive impact on economic growth inthe USA. These results apply irrespective of whether the regression analysis is conducted in the longrun or in the short run.
Keywords: United States of America; USA; Bank-Based Financial Development; Market-Based Financial Development; Economic Growth (search for similar items in EconPapers)
Date: 2015
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Journal Article: Do Financial Systems Spur Economic Growth in the USA? An Empirical Investigation (2019) 
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Persistent link: https://EconPapers.repec.org/RePEc:uza:wpaper:18833
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