For the Project, the first 8 pages i need to explain the underlying theory in the relation between financial development and economic growth, issues in obtaining causal estimates of financial development on economic growth and some of the existing empirical literature. Since the literature is vast you will not be able to cover everything and you should think about papers that are more close and relevant to the work you are doing. This is what the lecturer suggest “discuss the theory of the link between financial development and growth, talk about papers that do not consider financial development to be important and then discuss issues with finding a causal link between financial development and growth.”
For the remaining 12 pages, i need to
a)Presenting results using new financial development indicator variables that have not been used by King and Levine (1993).
b)Using an Instrumental variable for the financial development indicators and presenting new results using the IV method.
This part have to be done with STATA with comment and analysis followed by a conclusion.
The data file needed will be uploaded, and please read the project summary file carefully.
The things that i need in this dissertation is in part 2 and part 3 of the project summary file, thank you so much.
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