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Innovation, financial development and economic growth in Eurozone countries

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  • Rudra P. Pradhan
  • Mak B. Arvin
  • John H. Hall
  • Mahendhiran Nair

Abstract

Using a panel vector auto-regressive model, we study interactions between innovation, financial development and economic growth in 18 Eurozone countries between 1961 and 2013. We focus on whether causality runs between these variables both ways, one way, the other way or not at all. Our empirical results show that development of the financial sector and enhanced innovative capacity in the Eurozone contributes to long-term economic growth in the countries in the region.

Suggested Citation

  • Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Mahendhiran Nair, 2016. "Innovation, financial development and economic growth in Eurozone countries," Applied Economics Letters, Taylor & Francis Journals, vol. 23(16), pages 1141-1144, November.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:16:p:1141-1144
    DOI: 10.1080/13504851.2016.1139668
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