Financial markets and economic growth in Greece, 1986–1999

Abstract

This paper assesses empirically the relationship between the development of the banking system and the stock market and economic performance for the case of Greece over the period 1986-1999. Greece is a medium sized EU country where the financial liberalization process started back in the early eighties. The empirical results, using VAR models, suggest that there exists a bi-directional causality between finance and growth in the long run. The findings, using error-correction models, show that both bank and stock market financing can promote economic growth, in the long run, although their effect is small. Furthermore, the contribution of stock market finance to economic growth appears to be substantially smaller compared to bank finance.

Bank-specific, industry-specific and macroeconomic determinants of bank profitability

“…Some of the most important studies in this area are Angelini and Cetorelli (2003) and Maudos and Fernández de Guevara (2004). 17 This index involves the econometric estimation of a total revenue function with input prices as explanatory variables. The summation of the relevant coefficients provides the value of the index.…”

Análise Da Relação Entre Inovação, Mercado Acionário E Crescimento Econômico Nos Países Do Brics

“…Os resultados encontrados corroboram com outras pesquisas que não encontraram evidências efetivas entre o desempenho do mercado de ações com a inovação tecnológica e o crescimento econômico, tais como: (ARESTIS; DEMETRIADES; LUINTEL, 2001;BECK, 2003;HOOK, 2004;ZHU, ASH;POLLIN, 2004;LEVINE, 2004;DRITSAKI;DRITSAKI-BARGIOTA, 2005;HONDROYIANNIS;LOLOS;PAPAPETROU, 2005;BEM-NACEUR;GHAZOUANI, 2007;PILO, 2012;KUOSMANEN;VATAJA, 2013;FLORACKIS, et al, 2014;AHMED;MMOLAINYANE, 2014;ODHIAMBO, 2014).…”

The Impact of key Macroeconomic factors on Economic Growth of Bangladesh: a VAR Co-integration Analysis

“…They stress out to build the reliable financial system to experience the economic growth of the country. Hondroyiannis, et al (2005) [15] found by conducting study in Greece that the relationship between capital market and economic growth are bi-directional in the long run even though both stock market and banks can endorse economic growth but their effects are small. Ergungor (2008) stated that countries which follow inflexible judicial system have significance effect on economic growth by banking sector where in the flexible judicial system capital market has strong effect on economic growth.…”