The Relationship between Financial Development and Economic Growth in EU Member Countries: Sub-Group Estimation Based on the Countries’ Level of Development

• 발행기관: 세종대학교 경제통합연구소
• 저자명: Ela-Andrada Pușcașu
• 간행물 정보: 『Journal of Economic Integration』제39권 제2호, 319~343쪽, 전체 25쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2024.06.01

국문 초록

The financial systems undergo changes as countries grow, self-financed capital investments being less frequent and being replaced by financing through banking intermediation and later through capital markets. The financial development has an increasing role in the context of globalisation and emergence of market economies, supporting the exchange of funds between participants. Previous research papers present different results regarding the impact of financial development on economic growth; however, their preponderance shows a positive relationship, the financial system stimulating economic growth. This paper investigates the impact of financial development on economic growth using panel regressions for the member countries of the European Union, for the period 1990-2021. The results show that financial development, both through the activity of the banking sector and through the capital market, has a positive impact on economic growth, as long as there is a correspondence between the funds invested and the output of the real sector.

목차

I. Introduction

II. The Relationship between Financial Development and Economic Growth

III. Data and Methodology

IV. Results and Discussions

V. Conclusion

References

키워드

financial systems economic growth European Union banking sector capital market