Investigating financial development - economic growth nexus. A Southeastern Europe perspective

In a continuous challenge for increasing economic growth pace, Southeastern Europe economies need to explore all contributing channels to this process. While previous researches do not find a significant relation between financial development and economic growth in SEE countries, up-to-date analyses are missing in this aspect. This paper aims to investigate the finance-growth links in a representative group of ten SEE economies through empirically analyzing the latest data available with panel data techniques, and trying to understand if implementation of financial regulatory frameworks and economic reforms during the last decade has contributed to making financial sector development significant for growth.