The relationship between financial development and economic growth during the recent crisis: Evidence from the EU
Dimitrios Asteriou () and
Finance Research Letters, 2019, vol. 28, issue C, 238-245
This paper aims to examine the relationship between financial development and economic growth on the face of the recent financial crisis, using a panel dataset of 26 European Union countries over the period 1990–2016. The empirical approach uses multiplicative dummies to compare two distinct sub-periods before/after the crisis. The results show that before crisis, financial development promoted economic growth, while after the crisis it hindered economic activity. Also, the findings suggest that during the years 2008 and 2009 the capital adequacy of banks protected depositors and promoted the stability of the financial system.
Keywords: Economic growth; Financial development; Panel data; Dummy variables; Fixed effects (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:28:y:2019:i:c:p:238-245
Access Statistics for this article
Finance Research Letters is currently edited by R. GenÃ§ay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().