IDEAS home Printed from https://ideas.repec.org/a/taf/jsustf/v14y2024i3p658-674.html
   My bibliography  Save this article

Is finance a curse? reinvestigate the relationship between finance and economic growth

Author

Listed:
  • Umut Uzar

Abstract

The connection between finance and economic growth has a special place in modern economic literature. In the literature, despite the connection between finance and economic growth is mostly examined in linear form, the negative effects of financial sector crises on economic growth in recent years have motivated researchers to work in a non-linear form. In this context, the existence of the finance curse, which states that finance can harm economic growth after the threshold point, has been further investigated. The goal of this study is to research whether the finance curse hypothesis is valid in the E-7 countries for 2001–2017 by employing panel ARDL method. In the study using domestic credit to private sector as financial indicators, empirical findings display that the finance curse hypothesis is not valid in E-7. In contrast to the finance curse hypothesis, it has been discovered that financial development increases economic growth after the threshold point in these countries. Within the framework of the results, it can be said that a controlled financial development supported by strong financial regulations will be an important factor for economic growth in E-7 countries.

Suggested Citation

  • Umut Uzar, 2024. "Is finance a curse? reinvestigate the relationship between finance and economic growth," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 14(3), pages 658-674, July.
    • Handle: RePEc:taf:jsustf:v:14:y:2024:i:3:p:658-674
    DOI: 10.1080/20430795.2021.2012111
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20430795.2021.2012111
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20430795.2021.2012111?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jsustf:v:14:y:2024:i:3:p:658-674. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSFI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.