Funding Alternatives for More Effective European Economies

Abstract

The consolidation and increase in the efficiency of economies is today a priority objective, both at the world level and especially at a European level. But meeting it depends, however, on the nature, size and direction of the influences generated by a whole set of factors. Nevertheless, significant restrictions and advantages come from the way in which financial resources are attracted and used in national economies. This paper aims to study the relationships established between the way in which the need for financial resources of the national economies is covered and their performance, reflected through the evolution of the GDP. In this sense, using the financial information available for European countries, provided by EUROSTAT, OECD and the WB, the connections established between the characteristics of the European financial system (bank loans, market capitalization, loans from private and public bonds) and economic growth are identified and analyzed. This article introduces into the analysis the impact of the investments made in economy, as a source that generates added value, on economic growth. Making a profile of economic effectiveness at a European level (according to the level of financial resources attracted through bank loans, of those drawn through the capital market, and to the size of investments made in economy) allows a punctual evaluation of it, providing clues for any possible strategic corrections. In order to obtain the results of the research, the following tools have been used: the ratio technique, the multiple linear regression analysis and the multiple correspondences factor analysis. The data was processed using the SPSS 19 software.