restrictive business and labor market regulations. The results also show that long-run causality runs in both directions …

the direction of potential causality between financial and economic development. Our results conclude to the existence of … a single cointegrating vector between financial development and growth and of causality going from financial development … to economic growth. We find little evidence of reverse causation as well as bi-directional causality. We interpret this …

), and (iii) long-run causality runs in both directions, suggesting that, on average, an increase in unionization reduces …