Arnoldshain Seminar XV
“The EU and Latin America Facing Globalization”
September 4 – 6, 2017

Zarzosa Valdivia, Fernando, Universidad Nacional de Córdoba, and Simón Lisandro Ayala, Mapping the elasticity of economic growth to financial development: A 1980 – 2012 empirical analysis for 100 countries.
Measuring financial development by a broad index or three sub-index (deepness, accessibility and efficiency), this research estimates the financial development and economic growth relationships for a set of 100 countries by applying cointegration methods. It does so taking into account country- heterogeneities, which has not been studied yet. The mapping of the elasticities of economic growth to financial development (reflected by its broad or accessibility index) exhibits a bell-shaped quadratic form. Policy prescriptions regarding the impact of financial development on economic growth should take into account the idiosyncratic factors of each country.