TY - THES ID - 146387763 TI - An Empirical Re-assessment of the Finance-Growth Nexus AU - Hobelsberger, Karin AU - Artige, Lionel AU - Tharakan, Joseph AU - Lejeune, Thomas PY - 2020 PB - Liège Université de Liège (ULiège) DB - UniCat KW - financial development, Financial Development Index, Finance-Growth Nexus, economic growth, Principal Component Analysis, growth empirics, Pooled Mean Group Estimation, Generalized Method of Moments Estimation KW - Sciences économiques & de gestion > Macroéconomie & économie monétaire UR - https://www.unicat.be/uniCat?func=search&query=sysid:146387763 AB - This paper deals with the potential positive effect of financial development on economic growth, also known as the Finance-Growth Nexus. Much uncertainty and contradiction surround the subject matter. Based on the uncertain problem set at hand, the purpose of this study is to reduce ambiguity and provide a basis for future, more detailed research. The paper aims to add value by further refining the theoretical definition of financial development, as well as further developing empirical measurement. Furthermore, a large set of financial development variables and different estimation techniques are systematically tested against a harmonized data set, in order to increase the neutrality and comparability of results. However, results of various regression iterations were neither stable, nor always fully comparable due to changes in sample composition. Ergo, the high degree of uncertainty remains, and the author cannot reject the Null Hypothesis that there is no stable correlation between financial development and economic growth. There are many different potential explanations, but all lead to the same conclusion. Perhaps the mechanisms, interrelations and potential effects of financial development on economic growth cannot be measured from a macro perspective. Instead, focusing on a micro approach in future research could potentially add value. ER -