Abstract
The present paper tests empirically the existence of a causal relationship between the economic growth and the
development in the banking and stock market in transition economies and especially the case of Bulgaria. The Johansen
cointegration test indicated one long – run relationship between the banking sector, the stock market and the economic
growth while the application of the Granger causality test indicated a bilateral relationship between the economic growth
and the development in the stock market, as well as between the economic growth and the development in banking
sector. Finally, a unilateral relationship was concluded between the development in credit and stock market.
development in the banking and stock market in transition economies and especially the case of Bulgaria. The Johansen
cointegration test indicated one long – run relationship between the banking sector, the stock market and the economic
growth while the application of the Granger causality test indicated a bilateral relationship between the economic growth
and the development in the stock market, as well as between the economic growth and the development in banking
sector. Finally, a unilateral relationship was concluded between the development in credit and stock market.
| Original language | English |
|---|---|
| Title of host publication | MARKET AND ECONOMIC DEVELOPMENT IN BULGARIA |
| Publication status | Published - 2012 |