Financial Development and Economic Growth in European Countries: Bootstrap Causality Analysis

March 23, 2016

Abstract In the present study, it was investigated whether there was a causality relationship between financial development and economic growth for sixteen European countries. Data from the period of 1988-2012 was analyzed using the bootstrap panel causality test, which takes cross-section dependence and heterogeneity into account. The results of the test showed that there was a strong causality relationship between financial development and economic growth in European countries. In European…

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