Finance and growth nexus

An international analysis across cities

Bibliographic Data

ID10864737
AuthorsStella Ioannou (0000-0003-2042-302X, University of Oxford, corresponding author), Daniel Wojcik (0000-0003-2158-284X, University of Oxford), Dariusz Wójcik (0000-0002-4200-3432, University of Oxford)
Year2021
Volume58
Issue1
Pages223-242
Publication date2021-01-01
Open AccessYes
TypeARTICLE
VenueUrban Studies (JOURNAL)
Journal identifiersISSN: 0042-0980 • E-ISSN: 1360-063X
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/0042098019889244
OpenAlexW2999793807
LanguageEN
Citations received9
References cited42

We examine the relationship between finance and economic growth in the metropolitan areas of 75 countries at various stages of economic development in the period 2001–2015. Our analysis demonstrates an inverted-U shaped relationship between finance and growth. This relationship becomes even more significant in the areas of a country outside its largest financial centre, indicating that while these areas can benefit from financial development, they are also the most vulnerable. We show that large financial centres can have an impact on growth across their national economies, but in doing so they complement rather than replace local financial centres. Overall, our results highlight the risks associated with the excesses of financial development and lend evidence to support calls for more decentralised financial systems

Business · Economics · Financial analysis · Financial sector · Financial sector development · Financial structure · Financial system · Geography · Geography of finance · Metropolitan area · Nexus (standard · Banking stability, regulation, efficiency · Finance · Housing Market and Economics · Regional Economics and Spatial Analysis

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Open DOISci-HubOpen Access