Financial Development and Economic Growth an Empirical Analysis for Syria

Abstract

Recently, Syria startup a remarkable economic and financial revolution, which raised many positive expectations regarding development and growth in all sectors and on many levels. This research is evidence for an individual case study, although it is common to study regression across countries to judge the effects of financial development, but it is also important to study the evidence for each country at least at the simple level. Through this research we will highlight the impact of previous Syrian reforms, and analyze their role to reach this important stage, by explaining the relationship between financial development and economic growth in Syria, over a period of twenty years, in addition to examines whether the exogenous component of financial intermediary development influences economic growth, by using the direction of causality between financial development and economic growth in Syria is investigated for the period 1970-2009. In order to see the impact of different aspects of financial development . The results were obtained using statistical methods, and further provided panel results supported with evidence involve the legal, regulatory, and policy determinants of financial development.

Keywords: Financial Development, Economic Growth, Causality, Syria

JEL Classification: O4, O47, G