Financial Sector Development and Economic Growth - Evidence for Southeastern Europe

29 Pages Posted: 5 Mar 2007 Last revised: 10 Feb 2011

See all articles by Bettina Hagmayr

Bettina Hagmayr

affiliation not provided to SSRN

Peter R. Haiss

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

Kjell Sümegi

affiliation not provided to SSRN

Date Written: March 3, 2007

Abstract

Many inquiries into whether and how finance supports economic growth use broad cross-country samples, combine countries at a different development stage, focus on the financial system at large, and rely on older data. Using recent (1995-2005) data, we investigate the finance-growth-nexus in a narrow four-country sample of four emerging economies from Southeastern Europe that share many similarities. We apply a production function approach to analyze the impact of single financial market segments along with real capital stock growth, labor participation rate and educational attainment. Bond markets and the capital stock proved to have significant and positive effects on growth.

Keywords: Southeastern Europe, financial sector, economic growth, transition countries, Accession Countries

JEL Classification: O1, O4, P2, P34

Suggested Citation

Hagmayr, Bettina and Haiss, Peter R. and Sümegi, Kjell, Financial Sector Development and Economic Growth - Evidence for Southeastern Europe (March 3, 2007). Available at SSRN: https://ssrn.com/abstract=968253 or http://dx.doi.org/10.2139/ssrn.968253

Bettina Hagmayr

affiliation not provided to SSRN ( email )

No Address Available

Peter R. Haiss

WU Vienna University of Economics and Business ( email )

Institute for Production Management
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Vienna, A-1020
Austria
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UniCredit Bank Austria ( email )

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Vienna, A-1020
Austria
++43-(0)50505 44214 (Phone)
++43-(0)50505 89 44214 (Fax)

HOME PAGE: http://www.bankaustria.com

IES Vienna - Institute for the International Education of Students

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Austria

Kjell Sümegi (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

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