Pradhan, Rudra P.Arvin, Mak B.Hall, J.H. (John Henry)Nair, Mahendhiran2016-10-212016-11Rudra P. Pradhan, Mak B. Arvin, John H. Hall & Mahendhiran Nair (2016) Innovation, financial development and economic growth in Eurozone countries, Applied Economics Letters, 23:16, 1141-1144, DOI: 10.1080/13504851.2016.1139668.1350-4851 (print)1466-4291 (online)10.1080/13504851.2016.1139668http://hdl.handle.net/2263/57404Using a panel vector auto-regressive model, we study interactions between innovation, financial development and economic growth in 18 Eurozone countries between 1961 and 2013. We focus on whether causality runs between these variables both ways, one way, the other way or not at all. Our empirical results show that development of the financial sector and enhanced innovative capacity in the Eurozone contribute to longterm economic growth in the countries in the region.en© 2016 Informa UK Limited, trading as Taylor & Francis Group. This is an electronic version of an article published in Applied Economics Letters, vol. 23, no. 16, pp. 1141-1144, 2016. doi : 10.1080/13504851.2016.1139668. Applied Economics Letters is available online at : http://www.tandfonline.com/loi/rael20.InnovationFinancial developmentEconomic growthGranger causalityEurozone countriesPostprint Article