Financial Systems and Economic Growth: Evidence from Poland and Ukraine

Abstract

We have produced simplified models of an integral indicator of the level of financial system development and economic growth. We used the models of an integral indicator to compare the level of the development of the financial system and economic growth in Poland and Ukraine. We used integral indicators to evaluate whether the financial system influences economic growth in Poland and Ukraine. We may state that the relationship between the development of a financial system and economic growth in Poland and Ukraine generally has the same character, despite some individual differences. In Ukraine the effects of the financial system development on economic growth is more significant than in Poland. In contrast to Poland, the development of the financial system in Ukraine is still far from that level, after which it becomes unfavourable for economic growth. keywords: financial system, economic growth, an integral indicator of economic growth, the integral indicator of the financial system of development