Title

Assessing the role of financial deepening in business cycles: The experience of the United Arab Emirates

Source of Publication

Applied Financial Economics

Abstract

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.

Document Type

Article

First Page

447

Last Page

453

Publication Date

4-1-2005

DOI

10.1080/09603100500039417

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