Efficiency of the Financial Intermediaries and Economic Growth in CEEC
University of Tartu - Faculty of Economics and Business Administration
U of Tartu, Faculty of Economics and Business Administration Working Paper Series No. 8
This paper presents an analytical discussion and empirical evidence of the relationship between financial sector development and economic growth among Central and Eastern European countries. Theoretical views allow for the complex relationship between the financial sector development and economic growth. Empirical evidence is presented that depending on the time period and sub-sample the correlation of the financial development with economic growth can be negative or positive. Using monthly data the causality (in Granger sense) of this process is addressed - the causality can run one way or the other, depending on the particular country.
Number of Pages in PDF File: 31
Keywords: Financial sector, Economic Growth, CEEC
JEL Classification: O42, G23
Date posted: December 16, 2003