@techreport{48a83fcf508d424ea3bf7d5cb0a0ec3e,
title = "Is the Growth Effect of Financial Development Conditional on Technological Innovation?'",
abstract = "This paper argues that excessive financial development in combination with high levels of technological innovation or R\&D activities may lead to the former being ineffective in generating economic growth. This hypothesis is examined through a dynamic panel analysis using two measures of financial development, in conjunction with R\&D expenditure, for 36 OECD and non-OECD countries. Using a range of panel data estimators, our results show that the relationship between financial development and economic growth is not straightforward; rather, it is conditional upon the level of R\&D. Further, we find that a high level of R\&D is associated with a weak or negative effect of financial development on economic growth.",
keywords = "Financial Development, Technological Innovation, Growth",
author = "Bhatti, \{Arshad Ali\} and Haque, \{M. Emranul\} and Osborn, \{Denise R.\}",
year = "2013",
month = aug,
language = "English",
series = "Centre for Growth and Business Cycle Research Discussion Papers Series",
publisher = "Centre for Growth and Business Cycle Research",
number = "188",
type = "WorkingPaper",
institution = "Centre for Growth and Business Cycle Research",
}