The Literature on the Finance–Growth Nexus in the Aftermath of the Financial Crisis: A Review

Emmanuel Carré (1) , Guillaume L'Oeillet (2)

1 UBS Vannes - Université de Bretagne Sud - Vannes
2 CREM - Centre de recherche en économie et management

This article provides a survey of the recent literature on the finance and growth relationship, the so-called nexus, since the 2007 global financial crisis. We use simple bibliometric analysis to survey this literature. The crisis brought the nexus into question which is why we begin by reviewing the impact of the crisis on the pre-crisis consensus in the immediate aftermath of the crisis (2008–2014). Then, we review the evolution of the finance growth nexus after 2014. We discuss the current state of the pre-crisis consensus, and highlight the main features of the new consensus. We also propose a review of the methodological aspects of this recent literature, the econometrics of finance and growth in particular. Finally, we identify the actual limitations of literature and the key issues remaining unresolved which suggests avenues for future research.

Mots clés: Finance growth nexus; Financial crisis; Financial sector size; Nonlinearity; Too much finance

Domaines: Economies et finances

Emmanuel Carré, Guillaume L'Oeillet. The Literature on the Finance–Growth Nexus in the Aftermath of the Financial Crisis: A Review. Comparative Economic Studies, 2018, 60 (1), pp.161-180. ⟨10.1057/s41294-018-0056-6⟩. ⟨halshs-01746069⟩