Financial System Development and Economic Growth in Transition Economies: New Empirical Evidence from the CEE and CIS Countries |
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| Authors: | Laura Cojocaru Evangelos M Falaris Saul D Hoffman Jeffrey B Miller |
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| Institution: | 1. Bankable Frontier Associates, Somerville, Massachusetts, USA;2. Department of Economics, University of Delaware, Newark, Delaware, USA;3. Department of Business, Gallaudet University, Washington, DC, USA |
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| Abstract: | We examine the role of financial development in economic growth in the former Communist countries of Central and Eastern Europe and the Commonwealth of Independent States during the first two decades since the beginning of transition. These countries, which had undeveloped financial systems under Communism, provide an interesting test of the relationship between financial development and growth. Our study is the broadest in terms of coverage and time period. We find that measures of financial market efficiency and competitiveness are more important than the size of the market in terms of promoting economic growth. |
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| Keywords: | transition economies CEE CIS financial sector development economic growth |
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