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Corresponding Author:
Imad Moosa, School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia

International Evidence on the Financial Kuznets Curve

Volume 69 - Issue 4, October 2016
(pp. 365-378)
JEL classification: G00, G01
Keywords: Environmental Kuznets Curve, Financial Kuznets Curve, Finance Curse, Financialisation

Abstract

The results presented in this study provide cross-sectional evidence on the “financial Kuznets curve”, which is the financial counterpart of the environmental Kuznets curve. It is a representation of the “finance curse”, providing a warning signal against over-dependence on the financial sector. By measuring the degree of financialisation in terms of the ratio of publicly-traded shares to GDP, the results show an inverted U-shaped curve between the GDP growth rate and financialisation. The negative effect of financialisation on growth materialises much more quickly in high growth countries.


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Institute for International Economics
of the Genoa Chamber of Commerce


Istituto di Economia Internazionale
Camera di Commercio di Genova
Via Garibaldi, 4 (III piano) - 16124 Genova (Italy)
www.ge.camcom.gov.it