Financial development, growth and productivity

Purpose In this paper, the heterogeneity of linkages among financial development, productivity and growth across income groups is emphasized. Design/methodology/approach An empirical analysis conducted with an illustrative sample 130 economies over period 1991–2019 classified into four subsamples: Organisation for Economic Co-operation Development (OECD), developing, least developed net food importing developing countries. Forecast error variance decompositions panel vector auto-regressive estimations are computed, insightful findings. Findings Higher levels output stimulate economic development in agricultural sector, mainly via channel and, most economies, also through access to credit. Differently, role credit marginal. The findings have practical implications stakeholders involved planning long-run investments. less priorities should be given investments technology innovation, whereas markets more suited boost sector economies. Originality/value authors conclude on credit–output–productivity nexus contribute literature (at least) three ways. First, they assess how access, jointly determined. Second, use a novel approach, which departs from case studies based single-country data. Third, potential causality links policy implications.