Financial Markets and the European Economy: a Synthesis of Research Findings (download PDF 206 Kb)

Anthony Bartzokas

Abstract
If we accept the idea that several growth mechanisms exist then the analysis of the growth-finance nexus should consider the relationship between growth and financial variables conditional upon the specific growth mechanism, which is associated with different countries, sectors and innovations dynamics. The aim of the EIFC project was to initiate empirical research on capital markets and corporate performance in the European Union. The EIFC project covered four areas of comparative research on financial systems and corporate finance in European countries: (i) corporate finance, investment and employment; ii) financial markets and diffusion of innovation; (iii) patterns of venture capital development; and (iv) financial integration, growth dynamics and convergence. This paper presents a synthesis of the main research findings of the EIFC project.

Key Words: Economic Integration, Financial Aspects of Economic Integration, Technological Change

JEL classification: F15, F36, O57