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The Impact of Institutional Investors on Economic Growth of European Countries

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  • Mihaela BRODOCIANU

    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration)

Abstract

Institutional investors have an important place in current financial markets. The big amount of assets and the high expectations from retail investors is putting a lot of pressure on their results. Our paper is based on financial and economic data of 45 European countries, for the period 1995-2015. The scope of our study is to check if the presence of mutual funds, pension funds and insurance companies is important not only for financial development but also for economic growth, expressed as GDP growth per capita. Our results show a positive relation between the assets of institutional investors and GDP growth per capita and of all types of institutional investors, the highest impact is from insurance companies.

Suggested Citation

  • Mihaela BRODOCIANU, 2019. "The Impact of Institutional Investors on Economic Growth of European Countries," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(21), pages 112-119, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2019:i:21:p:112-119
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    References listed on IDEAS

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    6. Elyasiani, Elyas & Jia, Jingyi, 2010. "Distribution of institutional ownership and corporate firm performance," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 606-620, March.
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    More about this item

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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