Logo
Munich Personal RePEc Archive

Financial Development and Growth: Panel Cointegration Evidence from South-Eastern and Central Europe

Stojkoski, Viktor and Popova, Kristina and Tevdovski, Dragan (2017): Financial Development and Growth: Panel Cointegration Evidence from South-Eastern and Central Europe.

This is the latest version of this item.

[thumbnail of MPRA_paper_80802.pdf]
Preview
PDF
MPRA_paper_80802.pdf

Download (269kB) | Preview

Abstract

Ever since Schumpeter, macroeconomists have argued that financial development has a large and direct effect on the long run wealth of a nation. In this paper, we empirically investigate this relationship for a panel of 16 South-Eastern and Central European countries over the period 1995-2014 by employing a state-of-the-art panel cointegration technique. We find that financial development has a positive effect on the income per capita. The effect is statistically robust to other estimation methods and is economically large since it is almost twice the size of the gross capital formation. Nevertheless, the panel cointegration tests indicate a possibility of an endogenous relationship between the phenomena.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.