Financial Development and Economic Growth

Prior empirical evidence has confirmed a robust link§between financial development and economic growth.§However, the determinants of financial development§and the causality pattern between financial§development and economic growth are still§inconclusive. Moreover, there is debate on whether§government intervention in financial markets can§improve or hinder economic performance. The§experience of Taiwan has figured prominently in this§debate. This book makes an important contribution to§the discussion by using time-serious data analysis§covering the period 1976-1998 when the Taiwanese§government adopted financial repressionist policies§and later moved to financial liberalization. The book§sheds light on the variable impacts that government§intervention can have through its financial sector§policies and illustrates how the financial§development - economic growth relationship can change§with changes in the policy regime. This book will be§useful to economists and researchers who are§interested in analyzing country-specific§relationships between finance and growth and§particularly the impacts of government financial§sector intervention on economic growth.