Financial Development and Economic Growth: Evidence from Ten New EU Members

Guglielmo Maria Caporale, Christophe Rault, Robert Sova () and Anamaria Sova ()
Additional contact information
Robert Sova: CREST & University of Paris 1 Panthéon-Sorbonne
Anamaria Sova: E.B.R.C. Bucharest

No 8397, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper reviews the main features of the banking and financial sector in ten new EU members, and then examines the relationship between financial development and economic growth in these countries by estimating a dynamic panel model over the period 1994-2007. The evidence suggests that the stock and credit markets are still underdeveloped in these economies, and that their contribution to economic growth is limited owing to a lack of financial depth. By contrast, a more efficient banking sector is found to have accelerated growth.

Keywords: financial development; economic growth; transition economies (search for similar items in EconPapers)
JEL-codes: E44 E58 F36 P26 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-08
New Economics Papers: this item is included in nep-fdg, nep-gro, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: International Journal of Finance and Economics, 2015, 20 (1), 48–60

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Related works:
Working Paper: Financial Development and Economic Growth: Evidence from Ten New EU Members (2009)
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