o:28438 Financial development and growth evidence from Serbia en Abstract: This paper studies the relationship between financial development and economic growth in Serbia. We focus on the influence of stock market and banking-sector development on growth. Using the framework of a neoclassical growth model, we investigate the impact of stock market liquidity and credit activity of banks on per-capita GDP growth rate. In lines with many previous results in the literature, we find a positive and statistically significant impact of stock market liquidity and bank credit on economic growth. We control for the usual determinants of growth, such as government consumption, foreign direct investments and inflation. Keywords: economic growth; stock market; banks; transition economies 1552099 10.5937/industrija47-21454 1552101 0350-0373 2023-03-29T07:57:32.835Z 44 no 46 Miloš Božović Univerzitet u Beogradu Ekonomski fakultet 1544295 0000-0002-5087-1977 application/pdf 426283 https://phaidrabg.bg.ac.rs/o:28438 no yes 21 70 92000001 11A03 Industrija 47 1 77 89 2019