The Influence of the Funding Policy on the Development of Economies: Empirical Study at a European Level

World's economy struggles, nowadays, with significant slips caused both by structural problems and by the controversial social, investment, and financial policies applied in the countries on the Globe. In an attempt to overcome the lengthy period of instability and to reestablish the ascending trend of economic growth, it has become necessary to make the funding strategy more effective. The present paper aims, first of all, to identify and analyze the connections established between the funding policy and the results of the national economic activity, reflected through the dynamics of the GDP. Second, our intention is to point out a profile of economic effectiveness according to the level of the financial resources attracted through bank loans, of those applied through the capital market, and of the dimension of the investments made in economy. Using the financial information available for European countries, provided by EUROSTAT, OECD, and WB, this study evaluates the meaning and intensity of the connections established between the characteristics of the European financial system (bank loans, market capitalization, and loans from private and public bonds) and economic growth. This article introduces into the analysis the impact of the investments made in economy, as a source of added value, on economic growth. This approach is achieved through the multiple linear regression analysis. The multiple correspondence factor analysis has been used to identify the efficiency profile, and the data processing instrument used was the SPSS 19 software.