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Economic growth and financial liberalization in the EU accession countries

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  • Durmus Özdemir

Abstract

This article investigates the impact of financial liberalization on aggregate productivity growth. Based on a sample of the EU accession countries and using quarterly longitudinal panel data between 1995 and 2007, the static robust and dynamic panel data estimates indicate clear evidence of a link between the long-run growth and a number of indicators of financial liberalization. The empirical results illustrate that financial liberalization is negatively related to economic growth significantly. The results imply that higher levels of post-EU-membership growth are not caused by liberalized financial markets.

Suggested Citation

  • Durmus Özdemir, 2014. "Economic growth and financial liberalization in the EU accession countries," Applied Economics Letters, Taylor & Francis Journals, vol. 21(15), pages 1036-1044, October.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:15:p:1036-1044
    DOI: 10.1080/13504851.2014.907470
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