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Econometric Estimations of the Services and Financial Sector Impact on Economic Growth Variations in Times of Crisis

Author

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  • Cristian Dragos

    (BABES-BOLYAI University of Cluj-Napoca, Romania)

  • Simona Laura Dragos

    (BABES-BOLYAI University of Cluj-Napoca, Romania)

Abstract

The world economy has been recently upside–downed by the Global Financial Crisis. However, the effects have been extremely different from one country to another and from one economic sector to another. Starting from the economic assumptions formulated in the field’s literature, the article analyzes the hypotheses of the disadvantageous influences of the services and financial sector upon the volatility of the economic growth rate and the unemployment rate in times of crisis. Econometric estimations using cross-sectional OLS Robust (White) Regressions on a sample of worldwide data taken from the World Bank confirm the theoretical hypotheses. The consequences of the highlighted mechanisms can be significant through the repositioning of the role of the different economic sectors.

Suggested Citation

  • Cristian Dragos & Simona Laura Dragos, 2012. "Econometric Estimations of the Services and Financial Sector Impact on Economic Growth Variations in Times of Crisis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(Special N), pages 621-634, November.
    • Handle: RePEc:aes:amfeco:v:14:y:2012:i:special_no_6:p:621-634
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    More about this item

    Keywords

    global financial crisis; services; financial services; economic growth; unemployment; cross-sectional econometric models;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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