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An empirical analysis of the interlinkages between financial sector and economic growth

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  • Pirtea, Marilen
  • Dima, Bogdan
  • Milos, Laura Raisa

Abstract

There is a growing literature body which examines the connections between financial status and economic growth. The aim of this paper is to examine the mechanism through which this positive connection is realized. The methodology is based on a pool data regression with dynamic of real GDP as dependent variable and some key variables of the financial sector. The main output of our study consists in the thesis that the financial status matter for the economic growth.

Suggested Citation

  • Pirtea, Marilen & Dima, Bogdan & Milos, Laura Raisa, 2009. "An empirical analysis of the interlinkages between financial sector and economic growth," MPRA Paper 20085, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20085
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    File URL: https://mpra.ub.uni-muenchen.de/20085/1/MPRA_paper_20085.pdf
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    References listed on IDEAS

    as
    1. Demirguc-Kunt, Asli, 2006. "Finance and economic development : policy choices for developing countries," Policy Research Working Paper Series 3955, The World Bank.
    2. Demetriades, Panicos O. & Hussein, Khaled A., 1996. "Does financial development cause economic growth? Time-series evidence from 16 countries," Journal of Development Economics, Elsevier, vol. 51(2), pages 387-411, December.
    3. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    4. Levine, Ross, 1991. "Stock Markets, Growth, and Tax Policy," Journal of Finance, American Finance Association, vol. 46(4), pages 1445-1465, September.
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    Cited by:

    1. Correa, Paulo & Andres, Luis & Borja-Vega, Christian, 2013. "The impact of government support on firm R&D investments : a meta-analysis," Policy Research Working Paper Series 6532, The World Bank.

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    More about this item

    Keywords

    finance; growth; cost of capital; yield;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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