Spinthiropoulos K., Garefalakis A., Stiakakis E., Arvanitis S., (2010) ‘‘The casual relations between the economic growth and financial development in Greece: an empirical research for the causality analysis”, International Journal of Financial Economics and Econometrics, 2 (2) pp 113-126.
The main object of this research focuses on the empirical study of the causal relation among the degree of openness of the economy, the financial and economic growth using a multi-variate autoregressive model VAR. The long-term relation among GDP, the financial development and the degree of openness of the economy are based on the Cointegration test results. The Granger causality test, using the Vector Autoregration Estimate and the error correction model, suggests that there is a dynamic two-way causal link between the variables GDP and OPEN. In addition, there is an one way causal link between the variables GDP and FD and finally we observed an one way causal link between the variables OPEN and FD.
Keywords: Financial development, economic growth, degree of openness of economy, model VAR, cointegration, Granger’s Causality.