Original scientific paper
https://doi.org/10.1080/1331677X.2018.1523739
The role of the financial sector in the process of industrialisation in Central and Eastern European countries
Tonći Svilokos
orcid.org/0000-0003-4159-7918
; Department of Economics and Business Economics, University of Dubrovnik, Dubrovnik, Croatia
Perica Vojinić
orcid.org/0000-0001-8027-4711
; Department of Economics and Business Economics, University of Dubrovnik, Dubrovnik, Croatia
Meri Šuman Tolić
; Department of Economics and Business Economics, University of Dubrovnik, Dubrovnik, Croatia
Abstract
Increasing numbers of economists and policymakers consider that reindustrialisation is a key factor in enhancing economic growth and a better standard of living in post-crisis Europe. Therefore, a new European Union industrial policy focuses on increasing manufacturing share in gross domestic product (G.D.P.). The assumption of recently developed theoretical models states that development of the financial sector is essential for economic growth and therefore for the growth of the manufacturing industry. The aim of this research is to examine the importance of the financial conditions in the process of industrialisation in Central and Eastern European countries. The results of a macro panel model that examines which factors influence the manufacturing value added as a percentage of G.D.P. suggest that the role of the financial sector is very important for the level of industrialisation in the analysed countries. The research is based on data collected from the World Development Indicators database published by the World Bank for the period from 2005 to 2015.
Keywords
Industrialisation; manufacturing industry; financial conditions; panel analysis; G.M.M
Hrčak ID:
228578
URI
Publication date:
22.1.2019.
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