University of Hertfordshire

Corporate financing and macroeconomic volatility in the European union

Research output: Contribution to journalArticlepeer-review


  • A. Mullineux
  • V. Murinde
  • R. Sensarma
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Original languageEnglish
Pages (from-to)79-92
JournalInternational Economics and Economic Policy
Publication statusPublished - 2010


This paper investigates the impact of corporate financing patterns in the European Union (EU) on macroeconomic volatility. We examine macroeconomic data for eight EU countries. We find that during the period 1990 through 2005 bank financing was positively associated with volatility in GDP, consumption and investment. On the other hand, macroeconomic volatility declined with increased dependence on market-based financing from the equity and bond markets during this period.


Original article can be found at: Copyright Springer

ID: 83565