Role of financial development in economic growth in the light of asymmetric effects and financial efficiency

2020 ◽  
Author(s):  
Muhammad Shahbaz ◽  
Muhammad A. Nasir ◽  
Amine Lahiani
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Efficiency ◽  
Asymmetric Effects

scholarly journals Financial development and economic growth nexus in SSA economies: The moderating role of telecommunication development

2021 ◽  
Vol 9 (1) ◽  
pp. 1862395
Author(s):  
Mac Junior Abeka ◽  
Eric Andoh ◽  
John Gartchie Gatsi ◽  
Seyram Kawor
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Moderating Role

Financial Development and Economic Growth

2015 ◽  
pp. 233-245
Author(s):  
Filiz Eryılmaz ◽  
Hasan Bakır ◽  
Mehmet Mercan
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
New Zealand ◽  
Financial Development ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Annual Data ◽  
The Subject ◽  
The Relationship

The relationship between financial development and economic growth has been the subject of considerable debate in development and growth literature. Therefore this chapter provides evidence on the role of financial development in accounting for economic growth in 23 OECD countries (Italy, Japan, Luxemburg, Holland, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, England, USA, Australia, Austria, Belgium, Canada, Denmark, Finland, Turkey, France, Germany, Greece, Iceland) via panel data analysis using the annual data for the period 1980-2012. The authors find a positive relationship between financial development and economic growth for all countries. Also this result means that financial development leads economic growth in these countries. So the results may help policymakers formulate effective financial sector policies as a tool to promote economic growth.

The dynamic relationship between economic growth and life expectancy: Contradictory role of energy consumption and financial development in Pakistan

2020 ◽  
Vol 53 ◽  
pp. 257-266 ◽  
Author(s):  
Zhaohua Wang ◽  
Muhammad Mansoor Asghar ◽  
Syed Anees Haider Zaidi ◽  
Kishwar Nawaz ◽  
Bo Wang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Life Expectancy ◽  
Financial Development ◽  
Dynamic Relationship

scholarly journals The role of ICT and financial development in CO2 emissions and economic growth

2019 ◽  
Vol 27 (2) ◽  
pp. 1912-1922 ◽  
Author(s):  
Ibrahim D. Raheem ◽  
Aviral Kumar Tiwari ◽  
Daniel Balsalobre-Lorente
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Financial Development

Inflationary Thresholds, Financial Development and Economic Growth: New Evidence from Two West African Countries

2017 ◽  
Vol 17 (2) ◽  
pp. 20160042 ◽  
Author(s):  
Bernard Njindan Iyke ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Inflation Rate ◽  
Data Availability ◽  
Development Economic ◽  
African Countries ◽  
Inflation Rates ◽  
New Evidence ◽  
Threshold Range

This paper examines the role of inflationary threshold effects in the finance-growth relationship for Ghana and Nigeria. Ghana and Nigeria are relatively homogenous in terms of financial development, economic growth, and inflationary history and therefore provide an acceptable choice for this empirical analysis. Due to lack of data availability, the sample spans the period 1964–2011 for Ghana and 1961–2011 for Nigeria. Using appropriately specified threshold regressions, we found inflationary thresholds in both countries during the study periods. Specifically, the inflationary threshold range for Ghana is 10.73 %–29.83 %. For Nigeria, the inflationary threshold range is 10.07 %–19.25 %. By estimating the threshold regressions, we found financial development to have positive and significant effect on economic growth during low and moderate inflationary regimes; and insignificant effect on growth during high inflationary regimes, for both countries. In particular, financial development impact greatly on growth in Ghana when the rate of inflation is below a threshold of 10.73 % but dissipates when inflation rate reaches and exceeds 29.83 %. Similarly, financial development impact greatly on growth in Nigeria when the rate of inflation is below a threshold of 10.07 % but dissipates when inflation rate reaches and exceeds 19.25 %. The results imply that policymakers in these countries should take inflation into account when devising policies to promote financial development with the aim of generating economic growth. For without low or moderate inflation rates, such policies will not achieve their intended purposes.

scholarly journals Institutions and development in MENA region: evidence from the manufacturing sector

2015 ◽  
Vol 42 (8) ◽  
pp. 717-732 ◽  
Author(s):  
Mahmoud Arayssi ◽  
Ali Fakih
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Political Institutions ◽  
Civil Law ◽  
Institutional Setting ◽  
Mena Region ◽  
Content Type ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – The purpose of this paper is to study the role of institutions (including civil law origin), financial deepening and degree of regime authority on growth rates in the Middle East and North Africa region. Design/methodology/approach – This paper examines the implications of industrial firm-related and national factors for the determinants of economic growth using panel data through a fixed effect model. Findings – The results reveal that English civil law origin and the establishment of the rule of law work with the development of financial institutions to increase economic growth in these economies; however, the democratization of the political institutions and foreign direct investment do not assist financial development in promoting economic growth. Research limitations/implications – Data covered is limited to four years. Social implications – The findings emphasize the prominence of overcoming institutional weaknesses and establishing transparent public policy governing businesses as a pre-requisite for successful universal integration in developing countries. Originality/value – This paper contributes to the literature on the relationship between finance and economic growth in two aspects. First, the authors focus on the contribution of the institutional setting and its interaction with the financial development and how this affects economic growth of the manufacturing firms. Second, the authors explore the relationship between the role of institutions, governance, the country civil law origin and the economic growth.

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