Financial Sector and Business Cycles Determinants in the EMU: An Empirical Approach (1996-2011)

Dionysios Solomos () and Dimitrios N. Koumparoulis
Authors registered in the RePEc Author Service: Theofanis Papageorgiou

European Research Studies Journal, 2013, vol. XVI, issue 2, 34-58

Abstract: This paper investigates potential business cycles determinants for the EMU countries among financial sector indicators examining at the same time the link between financial sector variables and business cycles volatility. We find that the total value of stocks traded, the private sector debt and the net inflows of FDI constitute significant determinants of business cycles fluctuations. Financial openness has an increasing effect on business cycles volatility while there is an unsettled relationship between financial depth and volatility. Another important finding of the paper is that the analysis provides evidence in favor of the occurrence of opportunistic political business cycles among EMU counterparts. The robustness of the above findings is verified via the use of relevant econometric methods such as EGLS, GLM and fixed-effect models.

Keywords: Business cycles determinants; financial openness; financial development; business cycles volatility; and opportunistic political cycles (search for similar items in EconPapers)
JEL-codes: D72 E32 E44 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ersj.eu/repec/ers/papers/13_2_p3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xvi:y:2013:i:2:p:34-58

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().