scholarly journals Financial development and economic growth: Evidence from a panel of 16 African and non-African low-income countries

2018 ◽  
Vol 6 (1) ◽  
pp. 1449780 ◽  
Author(s):  
Jagadish Prasad Bist ◽  
Robert Read
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Low Income ◽  
Low Income Countries

How financial development and economic growth influence human capital in low-income countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ali ◽  
Syed Ali Ali Raza ◽  
Chin-Hong Puah ◽  
Shamim Samdani
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Financial Development ◽  
Low Income ◽  
Random Effect ◽  
Random Effect Model ◽  
Unit Root Test ◽  
Low Income Countries ◽  
Analysis Tool ◽  
Content Type

PurposeThis research aims to explain the effect of financial indicators and economic growth on human capital in low-income countries.Design/methodology/approachWe gathered balanced panel data from 1980 to 2016 over a sample of 12 low-income countries categorized by World Development Indicators. The data stationary properties were analyzed by unit root test while the existence of a long-run relationship among the variables was confirmed by cointegration test. We performed Hausman test to differentiate between the fixed effect and random effect model. The sensitivity analysis confirmed the robustness of the results.FindingsOur findings indicated that broad money supply and private sector credit has a positive and significant impact on human capital. Interestingly, bank credit showed a negative and significant effect on human capital. We also found a significant positive relationship between human capital and economic growth in the study sample.Originality/valueThis is a preliminary study using financial development and human capital in low-income countries with panel econometric techniques as an analysis tool. Overall, we suggest a policy to focus on the financial sector development and economic growth to produce sustainable human capital.

The Effects of Financial Development and Governance Quality on Economic Growth: Evidence from Developed and Developing Countries

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Assef Filfilan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Financial Development ◽  
Low Income ◽  
Good Governance ◽  
Principal Component ◽  
Threshold Level ◽  
Low Income Countries ◽  
Domestic Credit ◽  
Governance Quality

This paper investigates the effects of financial development on economic growth with especial emphasis on the role played by governance quality. An indicator of governance built from the Principal Component factor method (PCF) and which takes into account the simultaneous effects of political, institutional and economic governance, is used in mediating such relationship. The study is carried out using a two-step system dynamic GMM method for 93 developed and developing countries over the 1996–2018 period. The findings from the study revealed that the effects of financial development on economic growth various according to the nature of governance and the level of development of countries.  Results show a non-significant effect of financial development on economic growth for low-income countries and a positively significant impact in middle and high-income ones. Estimations demonstrate also that good governance plays an important and significant role in mediating the finance-growth relationship. Finally, results demonstrate that there is a certain threshold level that countries must achieve to make government domestic credit to private sector favorable to economic growth.

scholarly journals The Finance Growth Link: Comparative Analysis Of Two Eastern African Countries

2016 ◽  
Vol 19 (3) ◽  
pp. 147-167 ◽  
Author(s):  
Ashenafi Beyene Fanta ◽  
Daniel Makina
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
Low Income ◽  
Structural Breaks ◽  
Response Analysis ◽  
African Countries ◽  
Vector Autoregressive ◽  
Stock Market Development ◽  
Sub Saharan

This paper examines the finance growth link of two low-income Sub-Saharan African economies – Ethiopia and Kenya – which have different financial systems but are located in the same region. Unlike previous studies, we account for the role of non-bank financial intermediaries and formally model the effect of structural breaks caused by policy and market-induced economic events. We used the Vector Autoregressive model (VAR), conducted impulse response analysis and examined variance decomposition. We find that neither the level of financial intermediary development nor the level of stock market development explains economic growth in Kenya. For Ethiopia, which has no stock market, intermediary development is found to be driven by economic growth. Three important inferences can be made from these findings. First, the often reported positive link between finance and growth might be caused by the aggregation of countries at different stages of economic growth and financial development. Second, country-specific economic situations  and episodes are important in studying the relationship between financial development and economic growth. Third, there is the possibility that the econometric model employed to test the finance growth link plays a role in the empirical result, as we note that prior studies did not introduce control variables.

Basic Human Needs versus Economic Growth Approach for Coping with Urban—Rural Imbalances: An Evaluation Based on Relative Welfare

1979 ◽  
Vol 11 (10) ◽  
pp. 1129-1145 ◽  
Author(s):  
K Mera
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Relative Position ◽  
Urban Population ◽  
Low Income Countries ◽  
Human Needs ◽  
Urban Rural ◽  
Basic Human Needs ◽  
Growth Approach ◽  
Future Growth

Increasing attention is being paid to the ‘basic human needs' approach for reducing imbalances within a developing country, urban—rural imbalances being important among them. However, as investment for meeting basic human needs is not directly productive, the future growth of the economy would have to be sacrificed if this approach is taken. In this paper the development implications of two approaches, the economic growth and the basic human needs approaches, are projected through a simulation model, and they are evaluated relative to each other. It is shown that, even if the evaluation is based on the criterion of the relative position of the rural population to the urban population, low-income countries would be better off with the economic growth approach after about ten years. For middle- and high-income countries, the basic human needs approach deserves serious consideration.

scholarly journals The Role of Population in Economic Growth

SAGE Open ◽  
2017 ◽  
Vol 7 (4) ◽  
pp. 215824401773609 ◽  
Author(s):  
E. Wesley F. Peterson
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Low Income ◽  
Low Income Countries ◽  
High Population Growth ◽  
Economic Analyses ◽  
The Relationship ◽  
Lower Population ◽  
Capita Output

The relationship between population growth and economic growth is controversial. This article draws on historical data to chart the links between population growth, growth in per capita output, and overall economic growth over the past 200 years. Low population growth in high-income countries is likely to create social and economic problems while high population growth in low-income countries may slow their development. International migration could help to adjust these imbalances but is opposed by many. Drawing on economic analyses of inequality, it appears that lower population growth and limited migration may contribute to increased national and global economic inequality.

scholarly journals Technological Spillover, Growth Convergence And Technical Progress: Does technology flow from rich to poor economies?

2020 ◽  
Vol 8 (4) ◽  
pp. 132-145
Author(s):  
Oladele O Aluko ◽  
B. Sabiu Sani
Keyword(s):  
Economic Growth ◽  
Technical Progress ◽  
Low Income ◽  
Generalized Method Of Moments ◽  
Low Income Countries ◽  
Dynamic Panel Model ◽  
Poor Countries ◽  
Growth Convergence ◽  
Using Data ◽  
The One

This study examines Technology spillover from rich to poor countries, the study used a model that, at the aggregate level, is similar to the one sector neoclassical growth model. The model was estimated using data on technical progress, Average Product Per-Worker, Capital Stock and Technology Intensive Goods in 25 countries which consist of rich and poor countries over the last decade. A dynamic panel model is formulated and estimated Using Generalized method of moments by Arelano and Bond; and the implications of the estimates were evaluated for aggregate total factor productivity and economic growth. The results reveal that, on average, technology have contributed more to economic growth in high income economies and on the contrary technology have made little or no contribution in low income countries. Consequently, there is substantial variation across technologies and economies

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