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This document summarizes a research paper that examines the relationship between financial development and economic growth in 10 new EU member states from 1994 to 2007. It first reviews the evolution of banking and financial sectors in these countries. It then estimates a dynamic panel model to analyze the impact of financial development on economic growth. The results suggest that stock markets and credit markets remain underdeveloped, contributing little to growth due to lack of financial depth. However,

Author

Raluca Drb

Language

EN