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Financial Management and Economic Growth: The European Countries Experience

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  • Nuno Carlos LEITÃO

    () (Polytechnic Institute of Santarém, and CEFAGE, Evora University, Portugal)

Abstract

The purpose of this research is to investigate the impact of financial development on economic growth applied to European Countries. The initial GDP per capita is negatively correlated with growth of real GDP per capita. Our study shows that there is convergence within European Countries for the period 1990-2009. This paper confirms relevant theoretical hypothesis as international trade and saving encourage the economic growth. The inflation has a negative impact on economic growth as previous studies.

Suggested Citation

  • Nuno Carlos LEITÃO, 2012. "Financial Management and Economic Growth: The European Countries Experience," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(2), pages 261-268, December.
  • Handle: RePEc:rom:econmn:v:15:y:2012:i:2:p:261-268
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    References listed on IDEAS

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    More about this item

    Keywords

    European Countries; Financial development; Panel data.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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