Financial Development and Economic Growth: An Empirical Analysis for the UK

Athanasios Vazakidis, Antonios Adamopoulos
European Research Studies Journal, Volume XIV, Issue 2, 135-148, 2011
EOI: 10.11214/thalassinos.14.02.007

Abstract:

This paper investigates the relationship between financial development and economic growth for UK for the period 1965-2007 using a vector error correction model (VECM). The purpose of this paper is to examine the long-run relationship between these variables applying the Johansen cointegration analysis. Granger causality tests indicated that there is a causal relationship between financial development and economic growth for UK.


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