Assessing the role of financial deepening in business cycles: The experience of the United Arab Emirates
Source of Publication
Applied Financial Economics
The relation between financial market development and the severity of business cycles in the economy of the United Arab Emirates is investigated. No evidence is found of a dampening effect from financial deepening on cyclical fluctuations in the short-run, but strong effects in the long-run. These results extend recent findings on the financial development/economic growth nexus and imply that growth volatility reductions expected from further financial developments are slow to materialize especially in countries with relatively large and well-functioning financial sectors. © 2005 Taylor & Francis Group Ltd.
Darrat, Ali F.; Abosedra, Salah S.; and Aly, Hassan Y., "Assessing the role of financial deepening in business cycles: The experience of the United Arab Emirates" (2005). Scopus Indexed Articles. 2497.