Importance of Financial Sectors for Growth in Accession Countries

FINANCIAL DEVELOPMENT, INTEGRATION AND STABILITY, K. Liebscher, J. Christl, P. Mooslechner, D. Ritzberger-Gruenwald, eds., pp. 186-207, Edward Elgar, 2006

Posted: 19 Dec 2008 Last revised: 10 Feb 2011

See all articles by Gerhard Fink

Gerhard Fink

Dept of International Business and Trade

Peter R. Haiss

WU Vienna University of Economics and Business; UniCredit Bank Austria; IES Vienna - Institute for the International Education of Students

Goran Vuksic

Institute of Public Finance

Multiple version iconThere are 2 versions of this paper

Date Written: 2006

Abstract

Over the last decade the role of financial sector development in economic growth has become a major topic in empirical research. Most cross-section-oriented studies (for example Rousseau and Wachtel, 2000; Levine et al., 2000; Singh et al. 2000; Demirguec-Kunt and Levine, 1999) base their analyses on broad samples of industrial and developing countries. Most of them find a positive interrelation between financial development and economic growth. But as Ahmed (1998) argues with respect to bank development: "there are reasons to expect that [...] the effect of bank development on growth may not be the same in magnitude in developing countries and industrial economies [...] . Thus due to country aggregation we cannot answer interesting questions such as: how do the effects of banking development in a country such as the United States differ from those in Zimbabwe, say?"

Keywords: Transition countries, finance-growth-nexus, financial sector development

JEL Classification: E44, F36; G15, G21, P34

Suggested Citation

Fink, Gerhard and Haiss, Peter R. and Vuksic, Goran, Importance of Financial Sectors for Growth in Accession Countries (2006). FINANCIAL DEVELOPMENT, INTEGRATION AND STABILITY, K. Liebscher, J. Christl, P. Mooslechner, D. Ritzberger-Gruenwald, eds., pp. 186-207, Edward Elgar, 2006, Available at SSRN: https://ssrn.com/abstract=1317727

Gerhard Fink

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Peter R. Haiss (Contact Author)

WU Vienna University of Economics and Business ( email )

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