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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Relationship between the Capital Market and the Real Economy: The Case of the European Union

Ana-Maria TEPUS

http://dx.doi.org/10.6007/IJARAFMS/v8-i2/4241

Open access

In this paper we investigate the existence of a correlation between the capital market and the real economy in the case of the European Union using panel type data. Estimates of the panel model for the European Union have shown that the relationship is bidirectional, stronger from the real economy toward the capital market, with noticeable differences between countries.

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