The paper uses a dynamic panel model to analyze the relationship between financial development and industrialization in the context of low and middle income countries between 1970 and 2014. The results indicate that the relationship between the two is non-linear. More precisely, the results indicate that financial development has a negative effect on industrial development up to a point, after which the effect turns positive. This evidence of a “U-shaped” relationship emphasizes the centrality of financial development in the industrialization process in developing economies, but it also points to the complex nature of the relationship.

中文翻译：

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重新审视金融发展与工业化之间的联系：来自中低收入国家的证据

本文使用动态面板模型分析了中低收入国家在1970年至2014年之间金融发展与工业化之间的关系。结果表明，两者之间的关系是非线性的。更准确地说，结果表明，金融发展对工业发展的负面影响到一定程度，之后这种影响变为正面。这种“ U形”关系的证据强调了发展中经济体在工业化过程中金融发展的中心地位，但也指出了这种关系的复杂性。