Theoretical and Applied Economics
No. 8 / 2013 (585)
Financial development and economic growth in Central and Eastern Europe
The Bucharest University of Economic Studies
Raluca Andreea POPA
The Bucharest University of Economic Studies
Abstract. The objective of this paper is the empirical analysis of the relationship between financial development and economic growth in Central and Eastern Europe. Financial development is measured by broad money growth (annual%), domestic credit to private sector (% GDP), domestic credit to private sector (% GDP) annual growth, interest rate spread (lending rate minus deposit rate,%) and nonperforming loans (% total loans) and annual growth in GDP growth rates. Methodologically, we used a panel model for eight countries in Central and Eastern Europe for the period 1996 - 2011 (the date panel approach). The main conclusions of the paper are: (1) increase nonperforming loans and interest rate spreads negatively affect economic growth, (2) increase in domestic credit to private sector negatively affect GDP growth, but increase its growth rate positively affects GDP (3) broad money growth is less relevant for economic growth.
Contents
A regional model for labour demand in Romania
Romania’s accession to the Eurozone – a simulation using a simple DSGE model
Occupational mobility networks of female and male higher education graduates
Creating competitive poles – the sustainable model for obtaining the competitive advantage
Financial development and economic growth in Central and Eastern Europe
Neoclassical economic orthodoxy and the need for a new post-crisis economic paradigm
Territorial analysis of discriminated groups
The causal relationship between Foreign Direct Investment and Current Account: an empirical investigation for Pakistan economy
Interdependence between labor market and unemployment in the post-crisis economy
The internet is changing our world
Improvement of labor flexibility in Romanian companies using practices in the field in some EU countries
International monetary system – between crisis and reform