Financial and real sector interactions:the case of Greece
AbstractIn this study we try to detect the relationship between financial and real sector employing in the estimation procedure the recent time-series techniques of co-integration, vector error-correction modelling and Granger multivariate causality. We contribute to the existing literature by using for the first time a number of financial and economic variables for the case of Greece for the time period 1960-2005. Our empirical results reveal that the linkage between financial and real development is relatively weak in Greece and real sector plays the major role in the evolution of the financial system. The latter seems to promote growth only by increasing its competitiveness.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24391.
Date of creation: 2010
Date of revision:
Financial sector; real sector; Greek banks;
Find related papers by JEL classification:
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- G0 - Financial Economics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-03 (All new papers)
- NEP-FDG-2010-09-03 (Financial Development & Growth)
- NEP-MAC-2010-09-03 (Macroeconomics)
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