The Effect Of Financial Development On Economic Growth: Panel Data Analysis

The Effect Of Financial Development On Economic Growth: Panel Data Analysis

Mehmet Mercan, Mercan

In this study, the effect of financial development on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. Foreign direct investments and trade openness which were thought to have effects on the growth were included in the analysis.According to empirical evidence derived from the study made with panel data analysis it was found that the effect of financial development on economic growth was positive and statistically significant in line with theoretical expectations.The evidence thateven foreign direct investments and openness contributed to the growth positively was also found. Keywords:Financial Development, Economic Growth, BRIC-T, Foreign Direct Investment, Trade Openness. Jel Codes: E49, F19, G29

Conference or Workshop Item
PeerReviewed

2012-05-31

1321