Naslov
Changing Importance of Financial Sectors for Growth from Transition to Cohesion and European Integration

Autori
Vukšić, Goran ; Fink, Gerhard ; Haiss, Peter R.

Izvornik
EI Working Paper, No. 58

Vrsta, podvrsta
Ostale vrste radova, popularni rad

Godina
2004

Ključne riječi
Finance; educational attainment & growth; EU-cohesion and EU-accession countries; production function; credit; bond; stock markets

Sažetak
We use a production function approach in investigating the relationship between financial development and economic growth in 9 EU accession - mostly transition countries. These findings are compared with the results for the group of 18 developed countries, and separately, with the results for a group of less developed EU countries - structural fund recipients. We use aggregate measures of financial development as well as measures for single segments of financial sectors. In context of transition countries, bond markets are, to our knowledge, taken explicitly into account for the first time. We find that domestic credit and bond markets together with real capital stock growth stimulate economic growth in transition. With progress in cohesion, educational attainment becomes the next important factor that contributes to economic growth followed by labor participation in mature market economies. For the developed countries, financial sector did not play any positive role for growth over the period under study. We conclude that transfer mechanisms for growth differ over the development cycle. This is important to growth theory, to the sequencing of economic reforms and to financial sector development priorities.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA