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Title [sv]
Finansiell omvandling och ekonomisk tillväxt- Är den finansiella revolutionen förenlig med ekonomisk tillväxtteori?
Title [en]
Financial modernisation and economic growth: Is the financial revolution compatible with neoclassic growth theory?
Abstract [sv]
This project explores the relation between financial development and economic growth in Sweden during the period 1830 to 1970. Based on contradicting hypothesis of the financial revolution and neo-classic growth theory, we address the issue of financial intermediation and economic growth. We test the relation between financial and real economic development at both macro and micro level. At the macro level, the historical dynamic interplay between financial, real and natural capital and incomes is tested by structural time series modeling and cointegration analysis. At the micro level the dynamic causal relation between financial, real capital and output is tested in 50 leading manufacturing companies. By linking theories of growth accounting with hypotheses of financial history, this project could provide important insights as to the nature of the empirical relation between financial intermediation and economic growth in developing economies, characterised by high proportions of natural capital in relation to the man-made capital stock, gradual but increasing rates of industrialisation, initially low income growth rates and rapidly evolving financial institutions. Seen in a wider perspective, we believe this is an apt topic of research since the hypothesis that the emergence of modern financial precedes economic growth by several decades is not compatible with growth theory. Neither is growth theory compatible with 19th century growth rates of real capital and incomes.
Principal InvestigatorLindmark, Magnus
Coordinating organisation
Umeå University
Funder
Period
2009-01-01 - 2011-12-31
Identifiers
DiVA, id: project:860Project, id: 2008-02029_VR

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