Do Technological Development and Financial Development Promote Economic Growth: Fresh Evidence from Romania

Ijaz Ur Rehman, Muhammad Shahbaz and Phouphet Kyophilavong
Additional contact information
Ijaz Ur Rehman: University of Malaya, Kuala Lumpur, Malaysia.

International Journal of Economics and Empirical Research (IJEER), 2016, vol. 4, issue 2, 60-76

Abstract: Purpose: We study the relationship between financial development, technological development and economic growth in Romania. The study covers the time period of 1985-2011 in the case of Romania. We have applied structural break unit root in testing the integrating properties of the variables. Methodology: The cointegration for long run relationship between the variables is investigated by applying the ARDL bounds testing in the presence of structural breaks in the series. We construct aggregate indices of financial development and technological development using principal component analysis. Findings: Our empirical exercise shows the presence of cointegration between financial development, technological development and economic growth in the case of Romania. Financial development and technological development contribute to economic growth. Moreover, financial development leads technological development which Granger causes economic growth.Recommendations: Our empirical evidence suggests that economic growth is driven by financial development via technological development and that, in Romania,a stable financial system and capital market can facilitate technological innovations.

Keywords: : Financial Development; Technological Development; Economic Growth; Romania (search for similar items in EconPapers)
JEL-codes: O31 O33 O47 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://tesdo.org/shared/upload/pdf/papers/IJEER,%204_2_,%2060-76.pdf (application/pdf)
https://tesdo.org/journal_detail.php?paper_id=258&expand_year=2016 (text/html)

Related works:
Working Paper: Do Technological Developments and Financial Development Promote Economic Growth: Fresh Evidence from Romania (2013)
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:ijr:journl:v:4:y:2016:i:2:p:60-76

Access Statistics for this article

International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)

More articles in International Journal of Economics and Empirical Research (IJEER) from The Economics and Social Development Organization (TESDO) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Shahbaz (PhD Applied Economics) ( this e-mail address is bad, please contact ).