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Contribution of financial market segments at different stages of development: Transition, cohesion and mature economies compared

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  • Fink, Gerhard
  • Haiss, Peter
  • Vuksic, Goran

Abstract

What is the impact of financial sector segments at different stages of development? We apply a production function approach to investigate the impact of the credit, bond and stock segments in nine EU-accession countries over early years of transition (1996-2000) and compare these to mature market economies and to countries at intermediate stage. We find that the transfer mechanisms differ over the development cycle (from bond markets to educational attainment to labor participation) and that financial market segments with links to the public sector (but not stock markets) contributed to stability and growth in transition economies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Financial Stability.

Volume (Year): 5 (2009)
Issue (Month): 4 (December)
Pages: 431-455

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Handle: RePEc:eee:finsta:v:5:y:2009:i:4:p:431-455

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Web page: http://www.elsevier.com/locate/jfstabil

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Keywords: Finance-growth EU-accession countries Production function Financial sectors;

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Cited by:
  1. Soultanaeva, Albina, 2010. "Financial Intermediation and Economic Growth: Evidence from the Baltic countries," UmeÃ¥ Economic Studies 817, Umeå University, Department of Economics.
  2. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p5296ie95 is not listed on IDEAS
  3. Jérôme Creel & Paul Hubert & Fabien Labondance, 2013. "Financial stability and economic performance," Sciences Po publications 2013-24, Sciences Po.
  4. Zunino, Luciano & Fernández Bariviera, Aurelio & Guercio, M. Belén & Martinez, Lisana B. & Rosso, Osvaldo A., 2012. "On the efficiency of sovereign bond markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(18), pages 4342-4349.
  5. Jordan Kjosevski, 2013. "Banking Sector Development and Economic Growth in Central and Southeastern Europe Countries," Transition Studies Review, Springer, vol. 19(4), pages 461-473, March.
  6. Edoardo Gaffeo & Petya Garalova, 2014. "On the finance-growth nexus: additional evidence from Central and Eastern Europe countries," Economic Change and Restructuring, Springer, vol. 47(2), pages 89-115, May.

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