Capital Market Development And Economic Growth: The Case Of Romania

Flavia Barna and Petru-Ovidiu Mura ()
Additional contact information
Petru-Ovidiu Mura: West University of Timişoara, Romania

Annals of the University of Petrosani, Economics, 2010, vol. 10, issue 2, 31-42

Abstract: Capital markets play an important role in the economic development of emerging capital markets. Well functioning markets insure that both corporations and investors get or receive fair prices for their securities. In the literature on endogenous growth, the link between capital markets development and economic growth has received much attention. This paper examines the correlation between capital market development and economic growth in Romania using a regression function. The results show that the capital market development is positively correlated with economic growth, with feed-back effect, but the strongest link is from economic growth to capital market, suggesting that financial development follows economic growth, economic growth determining financial institutions to change and develop.

Keywords: capital market; economic growth; BET Index; quarterly PIB; time series; correlation (search for similar items in EconPapers)
JEL-codes: D53 E44 O16 O40 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://upet.ro/annals/economics/pdf/2010/20100204.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:pet:annals:v:10:y:2010:i:2:p:31-42

Access Statistics for this article

More articles in Annals of the University of Petrosani, Economics from University of Petrosani, Romania
Bibliographic data for series maintained by Imola Driga ().