Download or read book The Finance and Growth Nexus Re Examined written by Mr.Adolfo Barajas and published by International Monetary Fund. This book was released on 2013-05-29 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: A large theoretical and empirical literature has focused on the impact of financial deepening on economic growth throughout the world. This paper contributes to the literature by investigating whether this impact differs across regions, income levels, and types of economy. Using a rich dataset for 150 countries for the period 1975–2005, dynamic panel estimation results suggest that the beneficial effect of financial deepening on economic growth in fact displays measurable heterogeneity; it is generally smaller in oil exporting countries; in certain regions, such as the Middle East and North Africa (MENA); and in lower-income countries. Further analysis suggests that these differences might be driven by regulatory/supervisory characteristics and related to differences in the ability to provide widespread access to financial services.
Download or read book The Finance and Growth Nexus Re Examined written by Mr.Adolfo Barajas and published by International Monetary Fund. This book was released on 2013-05-29 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: A large theoretical and empirical literature has focused on the impact of financial deepening on economic growth throughout the world. This paper contributes to the literature by investigating whether this impact differs across regions, income levels, and types of economy. Using a rich dataset for 150 countries for the period 1975–2005, dynamic panel estimation results suggest that the beneficial effect of financial deepening on economic growth in fact displays measurable heterogeneity; it is generally smaller in oil exporting countries; in certain regions, such as the Middle East and North Africa (MENA); and in lower-income countries. Further analysis suggests that these differences might be driven by regulatory/supervisory characteristics and related to differences in the ability to provide widespread access to financial services.
Download or read book The Finance growth Nexus in Liberia Re examined written by Jackson S. W. Worlobah and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Growth and Financial Depth written by Peter L. Rousseau and published by . This book was released on 2005 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the finance-growth nexus has become firmly entrenched in the empirical literature, studies that question the strength of the empirical results have appeared and seem to have become more frequent as well. In this paper we re-examine the core cross-country panel results that established the relationship between financial depth and growth rates. We examine the sensitivity of the core result to changes in time period and variation in the sample of countries included. We find that the finance-growth relationship in [i.e. is] not as strong with more recent data as it was in the original studies with data for the period from 1960 to 1989. We offer two possible explanations. first, financial depth may have had greater value as a shock absorber in the 1970s and 1980s, decades characterized by worldwide nominal shocks. Second, the spread of financial liberalization in the 1980s may have led to increasing financial depth in countries that lacked the legal or regulatory infrastructure to successfully exploit financial development"--Abstract.
Download or read book The Finance growth Nexus Revisited From Origins to a Modern Theoretical Landscape written by Mikhail Stolbov and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Growth and Financial Development written by Muhammad Shahbaz and published by Springer Nature. This book was released on 2021-09-21 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike.
Download or read book The Finance Growth Nexus Revisited written by Peter Haiss and published by . This book was released on 2006 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Too Much Finance written by Mr.Jean-Louis Arcand and published by International Monetary Fund. This book was released on 2012-06-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether there is a threshold above which financial development no longer has a positive effect on economic growth. We use different empirical approaches to show that there can indeed be "too much" finance. In particular, our results suggest that finance starts having a negative effect on output growth when credit to the private sector reaches 100% of GDP. We show that our results are consistent with the "vanishing effect" of financial development and that they are not driven by output volatility, banking crises, low institutional quality, or by differences in bank regulation and supervision.
Download or read book Re Examining the Finance Growth Nexus in Malaysia and Indonesia written by M. Shabri Abd. Majid and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: By employing a battery of time-series techniques, the paper empirically examines the short- and long-run finance-growth nexus during the post-1997 financial turmoil in Malaysia and Indonesia. Based on the Autoregressive Distributed Lag (ARDL) models, the study documents a long-run equilibrium between economic growth, finance depth and inflation. Granger causality tests based on the Vector Error Correction Model (VECM) further reveal that there are: (1) No causality between finance and growth in Indonesia, which accords with the independent hypothesis of Lucas (1988); and (2) A unidirectional causality running from finance to growth in Malaysia, thus supporting the finance-growth led hypothesis or the supply-leading view. Based on the Impulse-Response Functions (IRFs), the study discovers that the variations in the economic growth rely very much on economic innovations.
Download or read book Economic Growth and Financial Depth written by Peter L. Rousseau and published by . This book was released on 2008 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the finance-growth nexus has become firmly entrenched in the empirical literature, studies that question the strength of the empirical results have appeared and seem to have become more frequent as well. In this paper we reexamine the core crosscountry panel results that established the relationship between financial depth and growth rates. We examine the sensitivity of the core result to changes in time period and variation in the sample of countries included.We find that the finance-growth relationship in not as strong with more recent data as itwas in the original studies with data for the period from 1960 to 1989. We offer twopossible explanations. First, financial depth may have had greater value as a shock absorber in the 1970s and 80s, decades characterized by worldwide nominal shocks. Second, the spread of financial liberalization in the 1980s may have led to increasing financial depth in countries that lacked the legal or regulatory infrastructure to successfully exploit financial development.We use a rolling regression technique to see which countries provide stronger support forthe finance growth relationship. Among poorer counties, the relationship is positive butimprecisely measured and among very rich countries it is absent. However, there is clear indication that financial deepening increases growth among the countries with real GDP per capita between $3,000 and $12,000 (1995 US). In a word, we find the widely accepted effect of finance on growth to be still present but fragile.
Download or read book Financial Structure and Economic Growth Nexus Revisited written by Lan Chu Khanh and published by . This book was released on 2019 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically reassesses the long-debated relationship between financial structure and economic growth. Specifically, we examine whether the effect of financial structure on economic growth is affected by the financial structure disproportion, banking crisis, economic volatility, and level of financial development. We employ the generalized method of moments estimation to a large panel of 100 countries over the 1971-2015 period. Although the main result supports market-based view, the positive effect of stock market development relative to banking system decreases significantly if financial structure is unbalanced. Our findings are robust to a variety of sensitivity check, including different measures of financial structure, periods, and model specifications.
Download or read book Economic Development in the Middle East and North Africa written by Mohamed Sami Ben Ali and published by Palgrave Macmillan. This book was released on 2015-11-19 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using cases on individual countries, Economic Development in the Middle East and North Africa offers diverse theoretical and empirical evidence on a variety of issues facing policymakers, investors, and other stakeholders in the region.
Download or read book Financial Structure and Economic Growth written by Aslı Demirgüç-Kunt and published by MIT Press. This book was released on 2001 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: CD-ROM contains: World Bank data.
Download or read book The Finance growth Nexus Revisited written by Franz R. Hahn and published by . This book was released on 2002 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Introducing a New Broad based Index of Financial Development written by Katsiaryna Svirydzenka and published by International Monetary Fund. This book was released on 2016-01-12 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a vast body of literature estimating the impact of financial development on economic growth, inequality, and economic stability. A typical empirical study approximates financial development with either one of two measures of financial depth – the ratio of private credit to GDP or stock market capitalization to GDP. However, these indicators do not take into account the complex multidimensional nature of financial development. The contribution of this paper is to create nine indices that summarize how developed financial institutions and financial markets are in terms of their depth, access, and efficiency. These indices are then aggregated into an overall index of financial development. With the coverage of 183 countries on annual frequency between 1980 and 2013, the database should offer a useful analytical tool for researchers and policy makers.
Download or read book Finance and Growth written by Simplice Asongu and published by . This book was released on 2015 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose - In a meta-study, we have bridged the gap between the pros and cons of a questionable finance-growth nexus.Design/methodology/approach - Over 20 fundamental characteristics that have influenced the debate over the last decades have been examined. The empirical evidence is based on 196 outcomes from 20 studies. We assess the degree of heterogeneity and identify causes of the observed differentiation.Findings - Our findings also show evidence of publication bias. Overall, a genuine effect exists between financial development and economic growth. A finance-growth nexus might not be appealing in our era because of: endogeneity-based estimations, publication bias and, effects of financial activity. A historical justification has also been discussed.Practical implications - Encouraging the publication of results with findings that are not consistent with the mainstream positive finance-growth nexus should provide new scholarly insights into the relationship. Depending on the specific context of sampled countries, the role of policy has also been to encourage financial development through measures that may expose countries to negative external shocks like financial crises. Policy makers that have been viewing the challenges of development exclusively from this point of view for the rewards of growth may not be getting the financial dynamics correctly.Originality/value - Very few meta-analysis studies have focused on the finance-growth nexus.
Download or read book Financial Development and Economic Growth written by Mr.Pablo Emilio Guidotti and published by International Monetary Fund. This book was released on 1992-12-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the empirical relationship between long–run growth and the degree of financial development, proxied by the ratio of bank credit to the private sector as a fraction of GDP. We find that this proxy enters significantly and with a positive sign in growth regressions on a large cross–country sample, but with a negative sign using panel data for Latin America. Our findings suggest that the main channel of transmission from financial development to growth is the efficiency of investment, rather than its volume. We also present a model where the negative correlation between financial intermediation and growth results from financial liberalization in a poor regulatory environment.
