Luca Deidda and Bassam Fattouh :
002_DP16 Non linearity between finance and growth
JEL Classification:
E44, O16
Abstract:
We present a simple model which establishes a non linear and possibly non monotonic relationship between financial development and economic growth. Applying a threshold regression model to King and Levine™s (1993) data set, we find evidence consistent with the theoretical model.
