Labor, Finance, and Economic Growth in Europe. Panel Data Evidence from 13 European Union Countries

During the contemporary crisis in Europe, a heated debate has started as how Europe has to become more efficient and what Europe has to do to improve its position and achieve economic growth again. The sector that has receive much attention is the financial one, while in the “real“ economy, labor rigidities have been thought for many years as an obstacle to European economic growth. The study examines the interrelationship between financial sector internationalization and labor market structures, in an attempt to examine their combined impact upon economic growth. Some evidences that financial internationalization and labor market rigidities work in opposite directions were found