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Financial Intermediation and Economic Growth: Evidence from the Baltic countries

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  • Soultanaeva, Albina

    () (Department of Economics, Umeå University)

Abstract

The hypothesis that financial development promotes economic growth is largely supported by empirical studies. This hypothesis is tested for the three Baltic countries using a time series approach that allows for interactions between the three countries. We find that economic growth is a positive function of financial development, proxied by banking credit available to private sector, in the long run. The results also show that there are long run interactions between the three Baltic countries.

Suggested Citation

  • Soultanaeva, Albina, 2010. "Financial Intermediation and Economic Growth: Evidence from the Baltic countries," Umeå Economic Studies 817, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0817
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    References listed on IDEAS

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    More about this item

    Keywords

    Cointegration; Spillovers; Financial development; Emerging markets;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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