Economic growth and financial development: empirical analysis of three Scandinavian countries

This paper examines the causality of economic growth and financial development, as well as introduces the reader to the leading theories in the discussed topic, accompanied by a review of empirical research done within this field using three different methods. We examined three Scandinavian countries: Sweden, Norway, and Finland. The results regarding causality are not conclusive. Previous findings suggest that causality is generally found in nations where financial development is still in its infant stage and is fairly undeveloped. The countries examined in this paper are highly developed which may be an explanation of the inconclusive results.