Financial development and economic growth: evidence from transition economies

Title
Financial development and economic growth: evidence from transition economies
Publication Date
2009
Author(s)
Akimov, Alexandr
Wijeweera, Albert
Dollery, Brian E
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
Routledge
Place of publication
United Kingdom
DOI
10.1080/09603100701857880
UNE publication id
une:3103
Abstract
The hypothesis that financial development promotes economic growth enjoys significant support from empirical evidence drawn from both developed and developing countries alike. However, analogous empirical evidence is still lacking for economies in transition. This article analyses the effects of financial intermediation on the growth of real GDP by employing data for 27 countries over the period of 1989 to 2004. Using an endogenous growth model and panel data analysis techniques, we estimate regressions with various proxies for financial sector development. We find that in contrast to some recent empirical work, there is a robust positive link between financial development and economic growth in transition economies.
Link
Citation
Applied Financial Economics, 19(12), p. 999-1008
ISSN
1466-4305
0960-3107
Start page
999
End page
1008

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