scholarly journals Economic growth in an oil-dominant economy of Nigeria: The role of financial system development

2020 ◽  
Vol 8 (1) ◽  
pp. 1810390 ◽  
Author(s):  
Oliver E. Ogbonna ◽  
Ikechukwu A. Mobosi ◽  
Okwudili W. Ugwuoke
Keyword(s):  
Economic Growth ◽  
System Development ◽  
Financial System

scholarly journals Financial system and growth and economic development

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Małgorzata Hala
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Real Sector ◽  
The Real ◽  
State And Local ◽  
The Impact

The aim of the article is to present the role of the financial system in economic growth and development. The first part presents the traditional understanding of the relationship between the economic system and economic growth. The second part presents the experience of financial crises and their impact on the conversation on the mutual relations between the financial sector and the real sector. The third part shows the role of the state in the financial system. The article describes the arrangement of interrelated financial institutions, financial markets and elements of the financial system infrastructure.  It shows what part of the economic system the financial system is, and whether it enables the provision of services allowing the circulation of purchasing power throughout the economy. The article presents the important role of the financial system, the role related to the transfer of capital from entities with savings to entities that need capital for investments. It shows the financial system as a set of logically related organizational forms, legal acts, financial institutions and other elements enabling entities to establish financial relations in the real sector and the financial sector, and this system forms the basis of activity for entities using money, enabling the conclusion of various economic transactions, in which money performs various functions. The article also presents the concept of a financial crisis as a situation in which there are rapid changes in the financial market, usually associated with insufficient liquidity or insolvency of banks or financial institutions, and as a result, a decrease in production or its deepening. The article also includes issues related to the impact of public authorities (state and local authorities) on the financial system in the economy.

scholarly journals Financial strategy in the conditions of economic transformations

2021 ◽  
pp. 190-196
Author(s):  
Iryna Adamenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial System ◽  
Well Being ◽  
Economic Transformation ◽  
Financial Strategy ◽  
Economic Transformations ◽  
Social And Economic Development ◽  
The Impact

Relevance of the research topic. In the conditions of economic transformations the financial strategy acts as the important economic lever of influence of public administration bodies on social and economic development of the country. The assessment of the mechanism of financial regulation in Ukraine indicates the need to develop the components of the financial system in conjunction with the transformational economic processes and the development of a sound financial strategy in accordance with the goals and objectives of social development. Formulation of the problem. The importance of developing a financial strategy in the context of economic transformation is due to the need to take into account the impact of internal and external challenges in the financial and economic environment, economic fluctuations due to the spread of the coronavirus pandemic. At the same time, the choice of financial strategy tools should be made taking into account the level of economic development of the country. Analysis of recent research and publications. The issue of developing a financial strategy is quite common in research. These are the works of famous domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, W. Tanzi, S. Kucherenko, L. Lysyak, L. Levaeva, I. Lukyanenko, V. Makohon, M. Pasichny, I. Chugunov and others. Selection of unexplored parts of the general problem. The above issues are relevant in connection with the deepening of economic transformation, the adverse impact of the Crown virus pandemic on the financial sector, which requires a number of specific tasks related to the development of financial strategy. Problem statement, research goals. The objectives of the study are: to reveal the role of financial strategy in the regulation of socio-economic processes, to substantiate the peculiarities of the development of the components of the financial system. The purpose of the study is to reveal the directions of financial strategy in the context of economic transformation. Method or methodology of the study. The article uses a set of research methods: a systematic approach, statistical analysis, structuring, analysis, synthesis, etc. Presentation of the main material (results of work). The role of financial strategy in the regulation of socio-economic processes is revealed, the peculiarities of formation and implementation of financial strategy are substantiated. The directions of financial strategy in the conditions of economic transformations are substantiated. Field of application of results. The results of the study can be used in the process of formation and implementation of financial policy of Ukraine, reforming the domestic financial system and its components. Conclusions in accordance with the article. The qualitative level of formation and implementation of financial strategy is determined by the system of financial institutions, the state of their development in a particular country aimed at ensuring economic growth and welfare of citizens. The functional purpose of financial strategy is the result of the evolution of the role and importance of state functions in socio-economic development. Depending on the dynamics of socio-economic processes, the tasks of the financial strategy and the tools for its implementation should be adjusted. The financial strategy in the conditions of economic transformations should be directed on formation of long-term potential of economic growth and increase of well-being of the population taking into account demographic tendencies and indicators of the macroeconomic forecast of social and economic development of the country.

scholarly journals Does financial system development, capital formation and economic growth induces trade diversification?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sohail Amjed ◽  
Iqtidar Ali Shah
Keyword(s):  
Economic Growth ◽  
System Development ◽  
Negative Relationship ◽  
Financial System ◽  
Capital Formation ◽  
Sultanate Of Oman ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Oil Sector

PurposeThe purpose of this study is to investigate long-run and short-run relationships between trade diversification, financial system development, capital formation and economic growth.Design/methodology/approachARDL estimation approach is applied to analyze long-run and short-run relationships between the financial system development, capital formation, economic growth and trade diversification in case of the Sultanate of Oman over the period 39 years starting from 1979 till 2017.FindingsThe results show that financial system development and economic growth has a positive impact on trade diversification in the short-run and long-run. However, capital formation has a negative impact on trade diversification in the short run and long run. The negative relationship between trade diversification and capital formation implies that over the period of study, the investment in capital goods was made to enhance the production capacity of the oil sector to maximize revenue.Research limitations/implicationsThis research is limited to analyze long-run and short-run relationship between the financial system development, capital formation and economic growth and trade diversification in case of Sultanate of Oman.Practical implicationsTo achieve the diversification goal, the policymakers need to formulate policies to strengthen the financial system and invest in infrastructure development to promote the non-oil sector. The research findings of this study will provide insights to the policymakers to formulate an effective diversification policy.Originality/valueThis research contributes to the existing literature by providing empirical evidence of the short-run and long-run analysis of the selected variables in the context of an oil-dependent country.

scholarly journals Tourism Specialization, Absorptive Capacity, and Economic Growth

2016 ◽  
Vol 56 (4) ◽  
pp. 423-435 ◽  
Author(s):  
Glauco De Vita ◽  
Khine S. Kyaw
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
System Development ◽  
Financial System ◽  
Policy Implications ◽  
Level Of Economic Development ◽  
Generalized Methods Of Moments ◽  
Methods Of Moments ◽  
The Relationship ◽  
Positive Effect

This article investigates the relationship between tourism specialization and economic growth while accounting for the absorptive capacity of host (tourism destination) countries, defined in terms of financial system development. We use the system generalized methods-of-moments (SYS-GMM) estimation methodology to investigate this relationship for 129 countries over the period 1995–2011. The results support the hypothesis that the positive effect of tourism specialization on growth is contingent on the level of economic development as well as the financial system absorptive capacity of recipient economies. Consistent with the law of diminishing returns, we also find that for countries with a developed financial system, at exponential levels of tourism specialization, its effect on growth turns negative. Significant policy implications flow from these findings.

The Need for News Forms of Financial Intermediation

2017 ◽  
pp. 143-161
Author(s):  
Tristan Auvray ◽  
Thomas Dallery ◽  
Sandra Rigot
Keyword(s):  
Economic Growth ◽  
Institutional Investors ◽  
Financial Intermediation ◽  
Financial System ◽  
Financial Sector ◽  
Policy Implications ◽  
Financial Intermediaries

This chapter deals with intermediaries in the financial sector such as banks and institutional investors. These actors are expected to play a central role in economic growth via the funding of investment because they are supposed to match creditors' desires (households) with borrowers' needs (firms) at a macroeconomic level. It aims to reassess the theoretical role of financial intermediation related to the allocation of savings in a context of a structural decline in overall investment for thirty years. To achieve this goal, it studies the evolution of financial intermediaries' behaviour in their capacity to finance investment and identifies the weaknesses of our current financial system which does not allocate optimally savings to firms' productive projects. Then it suggests some policy implications defining new forms of financial intermediation in which public financial intermediaries would have to play a greater role.

The Need for News Forms of Financial Intermediation

2020 ◽  
pp. 1978-1996
Author(s):  
Tristan Auvray ◽  
Thomas Dallery ◽  
Sandra Rigot
Keyword(s):  
Economic Growth ◽  
Institutional Investors ◽  
Financial Intermediation ◽  
Financial System ◽  
Financial Sector ◽  
Policy Implications ◽  
Financial Intermediaries

This chapter deals with intermediaries in the financial sector such as banks and institutional investors. These actors are expected to play a central role in economic growth via the funding of investment because they are supposed to match creditors' desires (households) with borrowers' needs (firms) at a macroeconomic level. It aims to reassess the theoretical role of financial intermediation related to the allocation of savings in a context of a structural decline in overall investment for thirty years. To achieve this goal, it studies the evolution of financial intermediaries' behaviour in their capacity to finance investment and identifies the weaknesses of our current financial system which does not allocate optimally savings to firms' productive projects. Then it suggests some policy implications defining new forms of financial intermediation in which public financial intermediaries would have to play a greater role.

scholarly journals Financial System of Russia: Approaches to Assessment of Impact on the National Economy

2020 ◽  
pp. 072-082
Author(s):  
A. V. Lebedev ◽  
◽  
E. A. Razumovskaya ◽  
Keyword(s):  
Economic Growth ◽  
National Economy ◽  
Financial System ◽  
The State ◽  
The Russian Federation ◽  
Main Factors ◽  
The Impact ◽  
Qualitative Characteristics ◽  
Qualitative Changes

An attempt is made to analyze the Russian financial system based on the existing international OECD methodology according to the Central Bank of Russia. The modern controversial views on the concepts of the impact of the financial system on economic growth, existing in the world financial science, are presented. The fundamental theories of economic growth in the format of production functions and the author’s interpretation of macroeconomic identity are presented; the role of labor and capital in economic growth, as the main factors subject to qualitative changes to the greatest extent, is noted. As an intermediate result for the analysis of the financial system of the Russian Federation, a coefficient is proposed that allows one to potentially analyze the influence of the qualitative characteristics of the state of the financial system on the socio-economic development of the national economy. The hypothesis about the influence of the financial system on the state of the national economy has been confirmed.

scholarly journals An empirical analysis of the FDI and economic growth relations in Albania: A focus on the absorption capital variables

2021 ◽  
Vol 11 (1) ◽  
pp. 20-32
Author(s):  
Lorena Çakërri ◽  
Oltiana Muharremi ◽  
Filloreta Madani
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
System Development ◽  
Technological Development ◽  
Research Question ◽  
Financial System ◽  
Essential Element ◽  
Economic Sectors ◽  
Human Capital Development ◽  
Capital Development

Over the past three decades, Albania has had positive and increasing foreign direct investment (FDI) inflows that have brought significant changes in many economic sectors. The paper’s purpose is to analyze the dynamic relationship between FDI and economic growth, particularly emphasizing absorption capital variables. The research question is if the human capital development level, technological development, trade openness, public expenses, and financial system development in Albania help or hinder the materialization of the expected positive effect of FDI on economic growth? We used empirical analyses to evaluate these relationships based on the model created by Borensztein, De Gregorio, and Lee (1998). We changed a few variables in the model, and we used the multivariate vector autoregressive (VAR) model and the vector error correction model (VECM) to analyze the variables’ causal relationships. Some of the results achieved are consistent with other authors’ findings, so human capital is considered an essential element of host countries’ absorptive capacity. In the long run, in Albania, the FDI’s impact on economic growth positively affects human capital development, especially on knowledge and expertise and financial system development. However, the technological difference index gives a negative long-term impact on economic growth, and trade opening is statistically insignificant.

The Relationship Between Financial Development, Innovation and Economic Growth

2019 ◽  
pp. 462-479
Author(s):  
Asuman Koc Yurtkur
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
System Development ◽  
Financial System ◽  
Empirical Literature ◽  
Development Economic ◽  
Development Indicators ◽  
Theoretical Approaches ◽  
The Subject ◽  
The Relationship

Along with the globalization process, the relationship between the existence of an advanced financial system, financial development and economic growth has become one of the most debated issues. The financial system, development and development indicators, which play an important role in the overall success levels of the economy, are among the topics to be considered due to this importance. In this study, financial development, economic growth, and theoretical approaches are discussed. Moreover, the fact that the subject is empirically presenting evidence requires examination of this situation with studies in the literature. The presence of the findings obtained empirically, in particular Turkey's economy has made it necessary to include a large empirical literature. The generally accepted financial development indicators, which provide comparability in terms of countries, are examined in terms of financial markets and financial institutions in terms of depth, access, stability and efficiency during the period 2005-2015.

scholarly journals Determinants of Economic Growth in the European Union Countries

2021 ◽  
Vol 101 (4) ◽  
pp. 357-369
Author(s):  
Emília Zimková ◽  
Michaela Vidiečanová ◽  
Petra Cisková
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
System Development ◽  
Financial System ◽  
Time Span ◽  
The European Union ◽  
European Union Countries ◽  
Corruption Perception ◽  
Determinants Of Economic Growth ◽  
Access Efficiency

This paper reassesses the long-debated relationship between the financial system development and economic growth. We use not only indicators for financial access, efficiency, stability and depth of the bank-oriented financial sector, but we also consider Eurozone membership, corruption perception and competitiveness of countries to examine the determinants of economic growth. We apply a panel data approach to 27 European countries over the 2004–2017 period. By splitting the time span, we examine whether the effect of financial system development, Eurozone membership, corruption perception and competitiveness on economic growth is affected by the occurrence of financial and debt crises. Our results indicate that loans to private sector do not always support economic growth. Our research also reveals that corruption perception has a negative impact on economic growth, and so does membership in Eurozone during a crisis.

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