Afonso, AntónioGuerreiro, Maria Margarida Velhinho2023-11-082023-11-082023-10Guerreiro, Maria Margarida Velhinho (2023). “The relation between economic growth and financial development in the European Union”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestãohttp://hdl.handle.net/10400.5/29325Mestrado Bolonha em Economia Monetária e FinanceiraThis dissertation provides insights into the financial development role, meaning the development of financial institutions, financial markets, and financial instruments, on Economic Growth. To better understand this relation, we performed a study based on the European Union Countries' Financial Development over the years 2000 until 2020 and on Economic Growth. This study will be performed by analysing several variables these being: Unemployment, Inflation, Government Expenditure, Domestic Credit, Market Capitalization, and Liquid Liability, and how they affect each other and consequently GDP. After this study, we learned that Financial Development is positively correlated with Economic Growth, meaning that a positive increase in the development of financial institutions, markets, and instruments will have a positive effect on Economic Growth, and the opposite will have a negative one.engEconomic GrowthFinancial DevelopmentMarket CapitalizationPortugalDomestic CreditEuropean Unionmaster thesis