This study utilizes size and activity to measure the development of the banking sector and stock market. Both linear and nonlinear Granger causality tests are used to examine the causality between variables. The results computed from linear and nonlinear Granger causality tests are compared with...

The hypothesis that financial development promotes economic growth enjoys significant support from empirical evidence drawn from both developed and developing countries alike. However, analogous empirical evidence is still lacking for economies in transition. This article analyses the effects of...