Does financial crisis really affect French economic growth? : fresh insights from nonlinear approach

Abstract EN

In this paper, we attempt to analyze the financial crisis impact on the French economic growth in France.

For this end, we use the industrial production index, the consumer price index, the money market rate and the transactions volume during the period from 2000 to 2015.

We also employ to nonlinear approach to study such effect and identify the existence of a nonlinear long-term relationship between variables.

The empirical results clearly show that the linear and non-linear coefficients of the shifted residuals for a single period have negative and positive signs.

Therefore, French economic growth has a non-linear dynamic towards its fundamental value.