Samenvatting
This paper examines whether financial sector development may partly undo growth-reducing
effects of policy uncertainty. By performing a cross-country growth regression for
the 1970-1995 period I find evidence that countries with a more developed financial sector
are better able to nullify the negative effects of policy uncertainty on per capita economic
growth. For countries with a very well developed financial sector, it may even be the case
that an increase in policy uncertainty positively affects per capita economic growth. This
clearly indicates the relevance of financial sector development.
Originele taal-2 | English |
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Uitgever | s.n. |
Aantal pagina's | 19 |
Status | Published - 1999 |