Financial Market Integration, Corporate Financing and Economic Growth: Final Report (22 November 2002)European Commission. Directorate-General for Economic and Financial Affairs, 2002 - Economic development - 80 pages This study provides a thorough assessment of the likely effects of financial market integration on the ability of European countries to grow faster and on how the possible benefits will be distributed among the Community countries and industries. It achieves several conclusions strongly supportive of the idea that promoting financial market integration is an important step in promoting economic growth in Europe. mproving transparency, tackling the pro-cyclical fiscal bias in good times, moving towards non-partisan application of the rules and improving transparency in the data can achieve both stronger discipline and higher flexibility. |
Contents
Executive Summary | 2 |
Estimating the relation between finance and growth | 25 |
Assessing the impact of financial integration on growth | 40 |
1 other sections not shown
Common terms and phrases
accounting standards added and output Austria banks Belgium capita GDP country and sector credit private sector creditor rights degree of financial dependence x domestic dependence x financial dependence x market dependent variable determinants of financial Development and Growth different from zero domestic credit private domestic financial development economic growth effect of financial efficiency estimates European Union External dependence external finance finance and growth financial dependence financial integration financial market integration financial system financially developed countries Finland firm-level data funds growth effect growth of value heteroskedasticity impact of financial indicators of financial industry-level data instrumental variables interaction term International investment investors Italy less financially developed Luigi Zingales Macroeconomic measures of financial Michael Emerson Netherlands number of firms OECD Output by Country percent level Policy Portugal potential growth Rajan and Zingales rate of sales regressions rule of law Standard errors statistically different stock market capitalization Sweden total finance value added