Revista Economică, Journal of Economic-Financial Theory and Practice, vol.66, no.3, pp.60-71, 2014 (Refereed Journals of Other Institutions)
In this study, the effect of financial development on the growth in 12 countries joining the EU after 2004 was analysed by using data of the period 2004- 2012. Panel data was used as the analysis method. According to the results of the analysis, domestic credits to private sector as % of GDP negatively affect economic growth. Market capitalization of listed companies as % of GDP is statistically insignificant affect on growth. However, M2 have a positive effect on growth and interest rate has negative impact on growth. Also 2009 year has a negative impact on economic growth. This situation can be described by 2009 global financial crisis.
Key words: Financial development, economic growth, European Union, panel data
Jel classification: C01, C23, G23, O47, O52, R11