Halkos, George (2010): Financial and real sector interactions:the case of Greece.
Download (243Kb) | Preview
In this study we try to detect the relationship between financial and real sector employing in the estimation procedure the recent time-series techniques of co-integration, vector error-correction modelling and Granger multivariate causality. We contribute to the existing literature by using for the first time a number of financial and economic variables for the case of Greece for the time period 1960-2005. Our empirical results reveal that the linkage between financial and real development is relatively weak in Greece and real sector plays the major role in the evolution of the financial system. The latter seems to promote growth only by increasing its competitiveness.
|Item Type:||MPRA Paper|
|Original Title:||Financial and real sector interactions:the case of Greece|
|Keywords:||Financial sector; real sector; Greek banks|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General
G - Financial Economics > G0 - General
|Depositing User:||Nickolaos Tzeremes|
|Date Deposited:||25. Aug 2010 14:05|
|Last Modified:||14. Feb 2013 02:57|
Atindehou, R.B., J.P. Guerie and E.K Amenounve, 2005. Financial intermediation and economic growth: evidence from Western Africa, Applied Financial Economics, 15, 777-790.
Beck,T., R. Levine and N. Loayza, 2000. Financial intermediation and growth: Causality and causes, Journal of monetary economics, 46, 31-77.
Bercivenga, V.R., B.D.Smith, 1991. Financial Development and Endogenous Growth, The Review of Economic Studies, 58, 195-209.
Buffie, E.F., 1984. Financial repression, the new structuralists and stabilization policy in semi-industrialized economics, Journal of Development Economics, 14, 305-22.
Chang, T., 2002. Financial development and economic growth in Mainland China: a note on testing demand-following or supply-leading hypothesis, Applied Economics Letters, 9, 869-873.
Cochrane, J., 1998. What do the VAR’s mean? Measuring the output effects of monetary policy. Journal of monetary economics, 41, 277-300.
Demetriades, P. and K.Hussein, 1996. Financial Development and economic growth: cointegration and causality tests for 16 Countries, Journal of Development Economics, 51, 387-411.
Engle, R.F. and C.W.J. Granger, 1987. Cointegration and error correction: representation, estimation and testing. Econometrica, 55, 251-276.
Εschenbach, F., J. Francois and L.Schuknecht, 2000. Financial sector openness and economic growth, in S.Claessens & M.Jansen,eds, The Internationalization of financial Services, Kluwer Law International, 103-115.
Fry, M.J.,1978. Money and capital or financial deepening in economic development, Journal of Money, Credit and Banking, 10, 464-75.
Gerschenkron, A., 1962. Economic Backwardness in Historical Perspective, Harvard University Press, Cambridge.
Gupta, K., 1984. Finance and Economic Growth in Developing Countries, Croom Helm, London
King, R. and R. Levine, 1993. Finance, entrepreneurship and growth: theory and evidence, Journal of Monetary Economics, 32, 513-42.
Levine, R.,1997. Financial development and economic growth: views and agenda, Journal of economic literature, 35, 688-726.
Levine, R., L. Norman and T.Beck, 2000. Financial intermediation and growth: causality and causes, Journal of Monetary Economics, 46, 31-77.
McKinnon, R.I., 1973. Money and Capital in Economic Development, The Brookings Institution, Washington DC.
McKinnon, R.I., 1991. The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy, Johns Hopkins University Press, Baltimore, MD. McKinnon, J.G.,1996. Numerical distribution functions for unit root and cointegration tests, Journal of Applied Econometrics, 11, 601-618.
Mouawiya Al-Awad and Narsi Harb, 2005. Financial development and economic growth in the Middle East, Applied Financial Economics, 15, 1041-1051.
Patrick, H.,1966. Financial development and economic growth in underdeveloped countries, Economic Development and Cultural Change, 14, 147-89.
Rin, M. and T.Hellmann, 2002. Banks as Catalysts for Industrialization, Journal of Financial Intermediation, 11, 366-97.
Robinson, J., 1952. The Generalization of the General theory, in the Rate of Interest and Other Essays, London: Μacmillan.
Shaw, E.S.,1973. Financial Deepening in Economic Development, Oxford University Press, New York.
Taylor, L.,1983. Structuralist Macroeconomics: Applicable Models for the third world, Basic Books, New York.
Thornton, J.,1996. Financial deepening and economic growth in developing economies, Applied Economic Letters, 3, 243-46.
Wijnbergen, S., 1983. Credit Policy, inflation and growth in a financially repressed economy, Journal of Development Economics, 13, 45-65.