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Direction of Causality Between Financial Development and Economic Growth. Evidence for Developing Countries

Publication Name: 
Studia Universitatis Vasile Goldis Arad
Volume, number, page: 
26:2, pp.1-22
Year of Publication: 
2016
Author(s): 
BORLEA SORIN Nicolae
MARE Codruta
ACHIM Monica Violeta
Publisher: 
Vasile Goldis University Press
City: 
Arad
Country of Publication: 
Romania
Full Date: 
2016
ISBN or ISSN: 
2285-3065
Category: 
Academic articles
Theme: 
Business
Keyword(s): 
Economy
Foreign economic policy
International Financial Relations
Financial Co-operation
Financial markets
Money markets
Capital market development
International economy
Macroeconomy
Capital needs
Capitalism
Developing countries
Abstract: 
The results of extensive studies that analyzed the existence and meaning of correlations between the economic growth and the financial market development lead us to a more thorough study of these correlations. Therefore, we performed a broad study of the developing countries from around the world (the developing part of each region constructed by the World Bank through its Statistics Bureau). The regions taken into analysis were: Europe and Central Asia, South Asia, East Asia and the Pacific, the Arab world, Latin America & and the Caribbean, the Middle East and North Africa, and Sub-Saharan Africa. For comparison purposes, we have also included in the sample the North American countries, the Euro Area and the European Union as a whole, because these last three areas are the main benchmarks of the financial markets.
The results are consistent with those from previous studies on the subject and vary depending on region and financial indicator considered.
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