Journal Article

The relationship between financial development and economic growth during the recent crisis: Evidence from the EU

Abstract

This paper aims to examine the relationship between financial development and economic growth on the face of the recent financial crisis, using a panel dataset of 26 European Union countries over the period 1990-2016. The empirical approach uses multiplicative dummies to compare two distinct sub-periods before/after the crisis. The results show that before crisis, financial development promoted economic growth, while after the crisis it hindered economic activity. Also, the findings suggest that during the years 2008 and 2009 the capital adequacy of banks protected depositors and promoted the stability of the financial system.

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Authors

Spanos, Konstantinos
Asteriou, Dimitrios

Oxford Brookes departments

Oxford Brookes Business School\Oxford Brookes Business School\Department of Accounting, Finance and Economics

Dates

Year of publication: 2018
Date of RADAR deposit: 2018-05-29

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

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Related resources

This RADAR resource is the Accepted Manuscript of The relationship between financial development and economic growth during the recent crisis: Evidence from the EU