Departamento de Gestão e Economia
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Browsing Departamento de Gestão e Economia by Subject "Abertura Financeira"
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- The nexus between financial development and economic growthPublication . Filipe, Nuno Miguel Dias; Fuinhas, José Alberto Serra Ferreira RodriguesThis study examines the relationship between economic growth, inflation, economic and financial openness, banking sector development and stock market development through a panel of six countries (France, Greece, Ireland, Italy, Portugal and Spain) for the period 1990-2015, using annual data. The data was gathered from the GFDD (Global Financial Development Database), WDI (World Development Indicators) both published by the World Bank and from IMF (International Monetary Fund). By using principal component analysis (PCA) was possible to construct two new measures, one for banking sector development, and other for stock market development, with several component’s each, the rest of the variables are the GDP per capita, inflation, trade, foreign direct investment proposed as a de facto measure. A panel vector auto-regressive (PVAR) model was used to test Granger causalities and the interdependence between variables as well as the presence of unidirectional and bidirectional causality between the variables. This study contributes for a better understanding between the relationship of the variables used and with a role of countries affected with the subprime crises, not yet studied together. Results show that the economic growth have a positive contribute to banking sector development, stock market development and to economic openness, however there was no causality from economic growth to financial openness.