scholarly journals Financial deepening and economic growth

2014 ◽  
Vol 47 (11) ◽  
pp. 1133-1150 ◽  
Author(s):  
Keshab Bhattarai
Keyword(s):  
Economic Growth ◽  
Financial Deepening

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
pp. 60-73
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals The Impact of Financial Deepening on Economic Growth in Nigeria (1981-2018)

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Sector ◽  
Financial Deepening ◽  
Growth Data ◽  
Main Research ◽  
The Impact

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

scholarly journals The Effect of Financial Deepening on Economic Growth: 2001-2016 the Case of Turkey

2018 ◽  
Vol 17 (4) ◽  
pp. 1498-1517
Author(s):  
salih ÖZTÜRK ◽  
selen ÇOLTU
Keyword(s):  
Economic Growth ◽  
Financial Deepening

scholarly journals Financial Deepening And Economic Growth Of Nigeria (1981-2018)

2020 ◽  
Vol 7 (2) ◽  
pp. 61-66
Author(s):  
OSUNKWO F O C
Keyword(s):  
Economic Growth ◽  
Financial Deepening

Impact of Financial Deepening on Economic Growth in Indian Perspective: ARDL Bound Testing Approach to Cointegration

2015 ◽  
Vol 3 (3) ◽  
pp. 49-60 ◽  
Author(s):  
Vipin Ghildiyal ◽  
A.K Pokhriyal ◽  
Arvind Mohan
Keyword(s):  
Economic Growth ◽  
Financial Deepening ◽  
Testing Approach ◽  
Indian Perspective

scholarly journals Financial Depth and Efficiency, and Economic Growth Nexus in Saudi Arabia and Oman

2018 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Abdullah Saeed ◽  
Shayem Saleh
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Panel Data ◽  
Causal Relation ◽  
Policy Implications ◽  
Financial Deepening ◽  
Empirical Results ◽  
Financial Depth ◽  
Detrimental Impact

AbstractThis paper aims to examine the financial depth and efficiency and economic growth nexus in the context of Saudi Arabia and Oman. In particular, this paper addresses on how financial depth and efficiency relate to economic growth and the causal relation between financial depth and efficiency and the economic growth in Saudi Arabia and Oman. Methodological wise, this study employs a panel data of Saudi Arabia and Oman over the period of 1990 - 2015 and uses the determination of line of best to analyze the causal relations. The empirical results show that financial deepening have desirable effects on the economic growth in Oman, while increasing financial depth and efficiency has detrimental impact to economic growth of Saudi Arabia. Based on these empirical facts, we conclude that the financial deepening in Saudi Arabia is not an economic prioritized strategy, but financial deepening is an economic prioritized strategy in Oman. Two main policy implications are reached.

scholarly journals Causal Relationship between Economic Growth, Financial Deepening, Foreign Direct Investment and Innovation: Evidence from China

2018 ◽  
Vol 8 (8) ◽  
pp. 1086-1101 ◽  
Author(s):  
Mollah Aminul Islam ◽  
Haiyun Liu ◽  
Muhammad Asif Khan ◽  
Sultanuzzaman MD Reza ◽  
Yassin Elshain Yahia ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Direct Investment ◽  
Financial Deepening

scholarly journals Financial deepening, inclusive finance and economic growth: analysis based on endogenous growth theory

2019 ◽  
Vol 1419 ◽  
pp. 012034
Author(s):  
Jun He ◽  
Yue Zhang ◽  
Datang Zheng ◽  
Hongyan Wan
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Growth Analysis ◽  
Growth Theory ◽  
Financial Deepening ◽  
Endogenous Growth Theory

Financial Deepening and Economic Growth in Jamaica

2017 ◽  
Vol 18 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Alton Best ◽  
Brian M. Francis ◽  
C. Justin Robinson
Keyword(s):  
Economic Growth ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Variance Decomposition ◽  
Annual Data ◽  
Financial Deepening ◽  
The Real ◽  
Long Run ◽  
Out Of Sample

The paper empirically examines the question of whether bank liquid reserves to bank assets ratio and domestic credit to private sector as a percentage of GDP strengthens financial deepening on the real sector and hence catalyzes economic growth in Jamaica. A Granger causality approach is employed within a multivariate framework. Cointegration is used to examine the short- and long-run relationships within the model. Innovative accounting techniques (impulse response function and variance decomposition) are also utilized to determine the out-of-sample relation between financial deepening and economic growth. The empirical analysis is conducted with annual data from 1980 to 2014 with three proxies for financial deepening. The empirical evidence suggests a ‘supplying-leading’ relationship in both the short and long run. These results are confirmed by the innovation accounting techniques (impulse response function and the variance decomposition). Our findings imply that Jamaica should first concentrate on developing its financial sectors which has the potential to spur higher levels of economic growth in the real sectors of the economy.

Financial depth and economic growth - the case of Hungary, the Czech Republic and Poland

2004 ◽  
Vol 54 (3) ◽  
pp. 297-321
Author(s):  
Katalin Mérő
Keyword(s):  
Economic Growth ◽  
Czech Republic ◽  
Financial Intermediation ◽  
Bank Loans ◽  
Eastern European ◽  
Financial Deepening ◽  
The Czech Republic ◽  
Catching Up ◽  
European Economies ◽  
The Relationship

The article focuses on the relationship between economic growth and financial intermediation, with special focus on the process of catching up in three Central and Eastern European economies: Hungary, the Czech Republic and Poland (CEC-3). The depth of financial intermediation and economic growth exhibit a close, direct relationship with each other. According to recent studies the relationship is causal and the level of financial development is a good indicator of future economic growth. Examining the relationship between the two factors is especially important for these Central and Eastern European economies, where the level of financial intermediation is very low compared to that of developed countries. The lack of financial deepening is even more pronounced taking into consideration that there is a significant catching-up process in every other areas of the economy. The initial proposition here is that in order to these countries catching up, their economic growth must necessarily be accompanied by a marked financial deepening, without which long-term economic growth is impossible. It is absolutely necessary that in the future the role of bank loans in these economies increases significantly and that a period characterised by a lending boom follows. The lending boom should occur in CEC-3 is not an unequivocal sign of imprudent lending or a supply-side expansion of bank loans - on the contrary, it should be viewed as complementary to the economic development at the given economic stage.

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