Please use this identifier to cite or link to this item:
|Title:||Financial development and economic growth: Evidence from ten new EU members|
|Keywords:||Financial development;Economic growth;Causality tests;Transition economies|
|Citation:||Economics and Finance Working Paper, Brunel University, 09-37|
|Abstract:||This paper reviews the main features of the banking and financial sector in ten new EU members, and then examines the relationship between financial development and economic growth in these countries by estimating a dynamic panel model over the period 1994-2007. The evidence suggests that the stock and credit markets are still underdeveloped in these economies, and that their contribution to economic growth is limited owing to a lack of financial depth. By contrast, a more efficient banking sector is found to have accelerated growth. Furthermore, Granger causality test indicate that causality runs from financial development to economic growth, but not in the opposite direction.|
|Appears in Collections:||Economics and Finance|
Dept of Economics and Finance Research Papers
Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.