Title: The impact of financial systems on economic growth under conditions of globalisation

Authors: Ksenija Kravec; Daiva Jurevičienė

Addresses: Corporate Actions Administration, Danske Bank, Saltoniškių Str. 7B, LT-08105 Vilnius, Lithuania ' Economics Engineering Department, Faculty of Business Management, Vilnius Gediminas Technical University – VILNIUS TECH, Sauletekio al. 11, LT-10223 Vilnius, Lithuania

Abstract: Researchers have noticed that economic growth is faster in certain countries than in others, and the development of the existing domestic financial sector is uneven. That is why it is essential not only to determine the relationship between financial sector indicators and economic growth but also to analyse the impact of the financial sector in different groups of countries with economic growth rates. The work aims to assess the influence of individual countries' financial systems (banks, financial markets) on economic growth. Borrowing and equity trading have been found to positively influence economic growth, while the market capitalisation of companies has been found to harm economic growth. The results can be used to develop growth plans for financial institutions that promote economic development.

Keywords: financial system; banks; financial markets; economic growth; globalisation; stability.

DOI: 10.1504/IJEBR.2025.145893

International Journal of Economics and Business Research, 2025 Vol.29 No.3/4/5, pp.396 - 414

Received: 22 Dec 2022
Accepted: 01 Jul 2023
Published online: 30 Apr 2025 *

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