Financial Crisis Impact on French Economic Growth

In this paper, we have verified the financial crisis impact on economic growth in France. Referring to the main econometric and statistical tools, we mentioned the existence of Heteroscedasticity problem in the industrial production index, the consumer price index, the money market rate and the transactions volumes within the Parisian Stock Exchange. Our database was extracted from the Central Bank of France, the International Monetary Fund and the World Bank for the period from 2001 to 2016 with monthly frequencies. We have integrated the logarithmic operator in order to bring this database as close as possible to the data. We also referred to nonlinear co-integration identifying the existence of a nonlinear long-term relationship that links industrial production only to transaction volumes and found that the linear and non-linear coefficients of the shifted residual for a single period have negative and positive signs. Therefore, French economic growth has a non-linear dynamic towards its fundamental value