Financial Integration and Economic Growth in Europe

Guglielmo Maria Caporale, Anamaria Diana Sova and Robert Sova

No 10563, CESifo Working Paper Series from CESifo

Abstract: This study examines the impact of financial integration on economic growth in the case of 31 European countries over the period from 2000 to 2021 using dynamic panel data models. The estimation results provide evidence of significant positive effects of financial integration on economic growth. They also suggest that the financial integration – economic growth relationship depends on country-specific characteristics such as the level of financial development and the quality of institutions. More precisely, financial integration appears to exert a greater positive influence on growth in the case of the European countries with a higher level of financial development and better institutions.

Keywords: financial integration; economic growth; Europe; financial development; quality of institutions; dynamic panel models; GMM estimator (search for similar items in EconPapers)
JEL-codes: C33 F36 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-eec, nep-fdg and nep-gro
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Chapter: Financial integration and economic growth in Europe (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10563

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