A service provided by the WU Library and the WU IT-Services

The Financial-Real Sector Nexus. Theory and Empirical Evidence.

Blum, David and Federmair, Klaus and Fink, Gerhard and Haiss, Peter (2002) The Financial-Real Sector Nexus. Theory and Empirical Evidence. EI Working Papers / Europainstitut, 43. Forschungsinstitut für Europafragen, WU Vienna University of Economics and Business, Vienna.

[img]
Preview
PDF
Download (666Kb) | Preview

Abstract

Without doubt a well-developed financial sector is related to efficient resource allocation and growth, but there is modest consensus on the direction of that link, on the notion of what is meant by "well developed", on which subset of the financial market is crucial and thus which organisational set-up provides optimal returns for both architects and market participants alike. With sluggish growth, torn down market barriers and systemic change in the EU accession countries the direction, magnitude, sustainability, institutional set-up of the finance-growth nexus (and which), becomes one of the core issues of both macroeconomic theory and practice. This paper reviews the economic theory available, provides a well structured overview of 54 empirical studies conducted since 1964, sets the stage for constructing a data base encompassing the major three segments of financial markets (stock, bond and bank credit) and provides the methodological background for combining cross-country production function and time-series approaches in order to answer the following questions: (1) What is the direction of the finance-growth nexus, (2) which segment of the financial sector drives whatever nexus there is, and (3) what are the features of a growth supportive financial architecture. (author's abstract)

Item Type: Paper
Keywords: economic growth / financial sector / financial system / banking intermediation / stock market / bond market
Classification Codes: JEL G1, G2, G3, O4
Divisions: Forschungsinstitute > Europafragen
Depositing User: Repository Administrator
Date Deposited: 13 Jan 2003 17:11
Last Modified: 20 Oct 2014 07:47
URI: http://epub.wu.ac.at/id/eprint/196

Actions

View Item