Abstract
By performing a cross-country growth regression for the 1970-1998 period this paper finds evidence for the fact that the impact of policy uncertainty on economic growth depends on the development of the financial sector. It appears that a higher level of financial development partly mitigates the negative impact of policy uncertainty on economic growth. This clearly indicates the relevance of financial sector development.
| Original language | English |
|---|---|
| Pages (from-to) | 299-312 |
| Number of pages | 14 |
| Journal | Economist-Netherlands |
| Volume | 149 |
| Issue number | 3 |
| Publication status | Published - Sept-2001 |
Keywords
- finance
- growth
- uncertainty
- cross-country
- INVESTMENT
- REGRESSIONS