engleski

THE IMPACT OF FINANCIAL SECTOR DEVELOPMENT ON ECONOMIC GROWTH: SOME EVIDENCE FROM TRANSITION COUNTRIES

In this paper we empirically examine relationship between financial sector development and economic growth in 17 transition European countries, in the period from 1996 to 2011. We apply dynamic panel model and control for other relevant determinants of economic growth and endogeneity. Hypothesis analyzed in this paper shows that financial system which have better expenses policies are better and more efficient in analyzing specific investment requirements. In this way better investment projects are selected and it encourages economic growth. Financial systems which are more liberal concerning entrance of competition contribute to a better financial system in terms of new products, technologies and overall new way of business, and all this has a positive effect on a country s economy. According to our findings, financial sector development positively and significantly affects economic growth

Financial system, Economic growth, Endogenous growth theory, Panel analysis

cjelokupan rad je dostupan na poveznici http://www.efsa.unsa.ba/ices2016/sites/default/fil es/Book%20of%20Abstract%20-%20ICES2016.pdf