Review of 'Finance and Growth: Schumpeter Might Be Right'

The article presents cross-country evidence supporting Schumpeter's theory that a developed financial system can foster economic growth. Using data from 80 countries over a 30-year period, the study finds a strong association between various measures of financial development and real per capita GDP growth, physical capital accumulation, and efficiency improvements. Additionally, the study highlights the importance of the predetermined component of financial development in predicting future rates of economic growth, physical capital accumulation, and economic efficiency improvements. Overall, the study provides compelling evidence for the positive impact of financial development on economic growth, adding to the existing body of research on the subject.