Exploring the Interdependence of Financial Markets and Economic Growth: A Global Perspective

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Dinesh Gabhane, GV Radhakrishnan

Abstract

This research paper explores the dynamic interrelationship between financial markets and economic growth, providing a global perspective on their mutual influence. The paper delves into the role of financial markets as both drivers and reflectors of economic growth, examining how well-functioning financial systems can enhance investment, facilitate savings, and promote efficient capital allocation. It highlights the critical mechanisms through which financial markets impact economic development, such as the provision of liquidity, the enhancement of market confidence, and the fostering of innovation through risk management tools.

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How to Cite
Dinesh Gabhane, GV Radhakrishnan. (2025). Exploring the Interdependence of Financial Markets and Economic Growth: A Global Perspective. European Economic Letters (EEL), 15(1), 987–995. https://doi.org/10.52783/eel.v15i1.2474
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