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The linkage between financial liberalisation and economic development: empirical evidence from Poland Author info | Abstract | Publisher info | Download info | Related research | Statistics Ewa Andriesz (Department of Economics, City University, London )
Dimitrios Asteriou () (Department of Economics, City University, London )
Keith Pilbeam () (Department of Economics, City University, London )
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This paper uses time series empirical data on six key indicators of financial liberalization in Poland to explore the linkage between financial liberalization and economic growth. We begin with a survey of the financial liberalization process and then use monthly empirical data covering the period 1990-2002 to examine the linkages between financial liberalization and economic development. The results of our study indicate that not only is there evidence of a long run positive linkage between financial liberalization and economic growth but also that there is strong evidence to indicate that the direction of causation runs from the former to the latter and not vice-versa. Evidence from all six of the financial indicators (Turnover, Capitalization, narrow money M0, broad money M2, Depth and Share Prices) indicates that they raise industrial production while the latter causes financial development in only two of the cases.
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Paper provided by Department of Economics, City University, London in its series City University Economics Discussion Papers with number
03/03.
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Length: 21 pages
Date of creation: 09 Jun 2003Date of revision:
Handle: RePEc:cty:dpaper:0303Contact details of provider: Postal: Northampton Square, LONDON EC1V 0HB Web page: http://www.city.ac.uk/economics More information through EDIRC
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