"Linking Financial Markets, Innovation, and Growth in European Economies

What is it about?

The paper examines the connections between economic growth, innovation, and financial activities in European countries from 1989 to 2016. Using a specific model, the study finds that financial market actions and economic growth influence innovation. It also discovers a two-way relationship between financial market activities and economic growth, as well as between innovation activities and economic growth in these countries. In simpler terms, the research explores how the economy's growth, innovation, and financial markets are interconnected in European countries over time.

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Photo by Scott Graham on Unsplash

Photo by Scott Graham on Unsplash

Why is it important?

This research is important because it investigates the relationships between economic growth, innovation, and financial market activities in European countries. Understanding these connections is crucial for policymakers, economists, and businesses as it provides insights into how financial markets and innovation contribute to or are influenced by economic growth. The findings of bidirectional causality shed light on the complex interactions among these factors. This research can inform strategies for fostering economic development, improving financial markets, and promoting innovation in European economies, contributing to more informed decision-making and policy formulation.