本文利用Koenker and Basset (1978) 年所提出的分量迴歸模型(QR)來探討不同經濟成長下的國家，金融機構發展與國家經濟成長之間存在的不對稱關係。另外，為了解決內生性的問題，本文亦使用Chernozhukov and Hansen (2004b, 2005) 所建議的工具變數分量迴模型(IVQR)，並且以法源當作工具變數。
實證結果顯示，金融機構發展與經濟成長的關係，在各分量下皆呈現正的影響，且此效果會隨著分量的提高而有逐漸增加的趨勢。另外，本文亦發現，經濟成長屬於中上的國家，著重本身金融機構的發展，相較於教育程度的改善，對促進國家經濟成長更為重要；相反地，屬於中下經濟成長的國家，反而藉由提高教育程度，來增加本身經濟成長的效果較佳。

This paper applies the Quantile Regressions (QR) approach developed by Koenker and Basset (1978) to examine the asymmetric effect of financial intermediary development on economic growth at each quantile of conditional growth distribution. In order to solve the endogeneity problem of financial intermediary development, this paper also uses another new Instrumental Variables Quantile Regressions (IVQR) method developed by Chernozhukov and Hansen (2004b, 2005) and uses the law origins as instrumental variables. The results show the effect of financial intermediary development on economic growth are positive over the entire range of the growth distribution, and appear the effect tends to increase at lower quantiles moving to higher conditional quantiles of growth. Moreover, this paper finds that some countries up the median of growth distribution can further their economic growth by improving their financial intermediary development. By contrast, some countries down the median of growth distribution can increase the educational attainment to advance the country economic growth

Table of Contents
1.   Introduction…….………………………………………………………………..	1
1.1  Motivation …...………….………………………………………………..	1
1.2  Objective………………………………………………………………….	3
2.   Literature Review …….…………………………………………………………	7
2.1  The Relationship between Financial Intermediary Development and Economic Growth..................................................................................7
     2.2  The Positive Effect on the Economic Growth………………………..8
2.3  The Negative Effect on the Economic Growth. …………………….10
3.   The Importance of the Financial Intermediaries……………………………12
3.1  The Process of the Financial Intermediaries Affect
  Economic Growth.……..……………………………………………….12
3.2  The Relationship between the Functions of the Financial
Intermediaries and the Economic Growth..…………………………14
4.   Methodology….………………………………………………………………21
     4.1  The Quantile Regression model................................................................21
4.2  The IV Quantile Regression Model …………………………………24
5.   The Data………………………………………………………………….....….29
5.1  Economic Growth……………………………………………………….30
5.2  Indicators of Financial Development…………………………………31
5.3  Conditioning Information Set………………………………………...33
5.4  Instrumental Variables………………………………………………...35
6.   Empirical Results……….………………………………………………......….39
6.1  Description Statistics…………………………………………………39
6.2  The Results of the OLS and 2SLS.……………………………………44 
6.3  The Results of the QR and IVQR.……………………………………46
6.4  Summary………………………………………………………………53
7.   Conclusions……….………………………………………………......….55
References……….………………………………………………......……………….64 
List of Figures
Figure 1.1  Research Process…....................................................................................6
Figure 3.1  A Theoretical Approach to Finance and Growth by Ross Levine.….…..13
Figure 6.1  Average Financial Development (Private Credit) and Growth Rate of Per-Capita GDP,1960-1995..……………………………………………41
Figure 6.2  Average Financial Development (Commercial-Central Bank) and Growth Rate of Per-Capita GDP, 1960-1995……………………………………41
Figure 6.3  Average Financial Development (Liquid Liabilities) and Growth Rate of Per-Capita GDP, 1960-1995……...…………………………………….42
Figure 6.4  The Effect of Financial Development-QR (Liquid Liability & 
Policy)……………………….…………………………………………49
Figure 6.5  The Effect of Financial Development-QR (Private Credit &
 Full)……………………………………………………………….……49
Figure 6.6  The Effect of Financial Development-QR(Liquid Liability &
Full).....…………………………………………………………………50
Figure 6.7  The Effect of Financial Development-IVQR (Liquid Liability &
Full)..……………………...……………………………………………50



 
List of Tables
Table 4.1  The List of All Countries…....………………………………………….28
Table 4.2  Variables and Sources...….…..…………………………………………29
Table 6.1  Summary statistics of growth rate of real per capita GDP 
Per-Capita GDP, 1960-1995....…………………………………………42
Table 6.2  Average annual growth rate of every country……………..……………43
Table 6.3  OLS and 2SLS Estimates of Effectof Financial Intermediaries Development.…...………………………………………………………45
Table 6.4  QR and IVQR Estimates of Effect of Financial Intermediaries Development.…...………………………………………………………51
Table 7.1  The Effect of Financial Development on Growth
(Private Credit)-OLS & QR…………………………………………….58
Table 7.2  The Effect of Financial Development on Growth
(Private Credit)-2SLS & IVQR...………………………………………59
Table 7.3  The Effect of Financial Development on Growth
(Commercial-Central Bank)-OLS…..…………………………………60
Table 7.4  The Effect of Financial Development on Growth
(Commercial-Central Bank)-2SLS & IVQR..…………………………61
Table 7.5  The Effect of Financial Development on Growth
(Liquid Liabilites)-OLS & QR..………………………………………62
Table 7.6  The Effect of Financial Development on Growth 
(Liquid Liabilites)-2SLS & IVQR….…………………………………63

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