MODELISATION DE LA RELATION NON-LINEAIRE ENTRE LE DEVELOPPEMENT FINANCIER ET LA CROISSANCE ECONOMIQUE

Résumé

This paper presents a model of endogenous growth in which financial sector enhances the efficiency of physical capital accumulation with real resources. The analysis based on the Eggoh and Villieu (2013) model to which weaddin formal financial sector and quality of state institutions. The model thus improved high lights the existence of the double causality between quality of institutions and financial development. It also shows that the relation ship between financial development and economic growth can be non-linear and depends on the efficiency of the financial sector in transforming savings into investment. When the informal financial sector is fairly efficient, its development stimulates economic growth; When it’s not very efficient, its effect depends on the efficiency of the formal financial sector. Below a certain threshold of financial development, the efficiency of the formal financial sector stimulates growth, while above this thres holdithinders growth.