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09.11.2020 | Research Article

Revisiting the link between financial development and industrialization: evidence from low and middle income countries

verfasst von: Gouthami Kothakapa, Samyukta Bhupatiraju, Rahul A. Sirohi

Erschienen in: Annals of Finance | Ausgabe 2/2021

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Abstract

The paper uses a dynamic panel model to analyze the relationship between financial development and industrialization in the context of low and middle income countries between 1970 and 2014. The results indicate that the relationship between the two is non-linear. More precisely, the results indicate that financial development has a negative effect on industrial development up to a point, after which the effect turns positive. This evidence of a “U-shaped” relationship emphasizes the centrality of financial development in the industrialization process in developing economies, but it also points to the complex nature of the relationship.

Vorheriger Artikel On modifications of the Bachelier model

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Titel: Revisiting the link between financial development and industrialization: evidence from low and middle income countries
verfasst von: Gouthami Kothakapa
Samyukta Bhupatiraju
Rahul A. Sirohi
Publikationsdatum: 09.11.2020
Verlag: Springer Berlin Heidelberg
Erschienen in: Annals of Finance / Ausgabe 2/2021
Print ISSN: 1614-2446
Elektronische ISSN: 1614-2454
DOI: https://doi.org/10.1007/s10436-020-00376-y

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