This paper contributes to the literature on the finance-growth link by presenting new findings based on a new, larger dataset that improves earlier studies in its greater coverage of time periods and countries, as well as in the incorporation of additional control variables like institutional quality and the investment rate. Our findings demonstrate that financial development nor institutional quality in its political dimension have a positive and statistically significant effect on economic growth. However, the estimated models do not provide conclusive results about the effect of the economic dimension of institutional quality on growth.

Key words: financial development, economic growth, institutional quality.
JEL Classification: E44, O16, O43.