How Global Financial Crisis Affected the Financial Development and Economic Growth?

Advances in Economics and Business, 2017

30th Australasian Finance and Banking Conference 2017

12 Pages Posted: 6 Jul 2017 Last revised: 20 Sep 2017

See all articles by Sinem Celik Girgin

Sinem Celik Girgin

University of Tasmania - National Centre for Ports and Shipping

Hong-Oanh Nguyen

University of Tasmania - National Centre for Ports and Shipping

Thanasis Karlis

University of Tasmania - National Centre for Ports and Shipping

Date Written: June 20, 2017

Abstract

A growing body of theoretical and empirical literature analyses the relationship between finance and economic growth. The relationship has been strongly supported by many empirical analyses. However, Global Financial Crisis, 2008 and significantly improved econometric techniques made scholars to revisit this relationship. The main motivation of this paper is to empirically revisit the traditional financial development proxies relationship with economic growth after world’s second greatest financial crisis. In this study, both fixed effect and dynamic panel data analysis are conducted by using 147 countries over the period of 2000-2013. The analysis results prove the destructive effect of GFC, 2008 on the relationship between financial development and economic growth. Also, the finding showed that the significance of traditional financial development proxies has lowered after the crisis.

Keywords: Economic Growth; Financial Development; Global Financial Crisis; Panel Data

JEL Classification: O10, O11, O43, O47

Suggested Citation

Celik Girgin, Sinem and Nguyen, Hong-Oanh and Karlis, Thanasis, How Global Financial Crisis Affected the Financial Development and Economic Growth? (June 20, 2017). Advances in Economics and Business, 2017, 30th Australasian Finance and Banking Conference 2017, Available at SSRN: https://ssrn.com/abstract=2997300 or http://dx.doi.org/10.2139/ssrn.2997300

Sinem Celik Girgin (Contact Author)

University of Tasmania - National Centre for Ports and Shipping ( email )

Locked bag 1397
Launceston, Tasmania 7250
Australia

Hong-Oanh Nguyen

University of Tasmania - National Centre for Ports and Shipping ( email )

Locked bag 1397
Launceston, Tasmania 7250
Australia

Thanasis Karlis

University of Tasmania - National Centre for Ports and Shipping ( email )

Locked bag 1397
Launceston, Tasmania 7250
Australia

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
137
Abstract Views
1,374
rank
284,041
PlumX Metrics