The Relationship Between Financial Innovation and Economic Growth: Evidence from Azerbaijan

2021 ◽  
pp. 207-217
Author(s):  
Shahriyar Mukhtarov ◽  
Javid Aliyev
Keyword(s):  
Economic Growth ◽  
Financial Innovation ◽  
The Relationship

scholarly journals Financial Inclusion between Financial Innovation and Economic Growth A Study of Lower Middle Income Economies

2021 ◽  
Vol 7 (4) ◽  
Author(s):  
Hina Affandi ◽  
Qaisar Ali Malik
Keyword(s):  
Economic Growth ◽  
Financial Innovation ◽  
Income Group ◽  
Financial Inclusion ◽  
Sample Period ◽  
Middle Income ◽  
Underserved Community ◽  
Middle Income Group ◽  
The Relationship

Financial inclusion is a key concern that has achieved much impulsion in the last two decades internationally. It has the scope of reporting of financial scheme and institutions to the underserved community in the economy. This study examined the effect of financial innovation on economic growth with the mediation of financial inclusion. To address the relationship researchers in this study have used measures from a dataset of low and lower middle income group economies over a sample period from 2010-2017. The results of this study shows that financial innovation creates opportunities for financially excluded segment of the society which results in financial inclusion that leads to economic growth of low and lower middle economies. Therefore, financial innovation is a way for creation of financial inclusion in low and lower middle economies. 

Bank competition, financial innovations and economic growth in Ghana

2014 ◽  
Vol 5 (1) ◽  
pp. 30-51 ◽  
Author(s):  
Anthony Adu-Asare Idun ◽  
Anthony Q.Q. Aboagye
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Innovation ◽  
Bank Competition ◽  
Content Type ◽  
Financial Innovations ◽  
Long Run ◽  
Short Run ◽  
The Relationship ◽  
Finance Growth Nexus

Purpose – This paper takes the finance-growth nexus further by looking at the relationship between bank competition, financial innovations and economic growth in Ghana. The purpose of this paper is to find the causality among bank competition, financial innovations and economic growth in Ghana. Design/methodology/approach – The relationship between bank competition, financial innovations and economic growth was established through the framework of the endogenous growth model. In addition, the paper employed the bound testing ARDL cointegration procedures to enable us to establish both short-run and long-run relationship between bank competition, financial innovations and economic growth. Granger causality test were also estimated to determine the direction of causality. Findings – The results showed that, in the long run, bank competition is positively related to economic growth while financial innovation is negatively related to economic growth. In the short run, bank competition is negatively related to economic growth. By the same token, financial innovation is positively related to economic growth in the short run. In terms of causality, the results showed that there is unidirectional Granger causality from bank competition to economic growth. However, there is bidirectional Granger causality between financial innovation and economic growth. Practical implications – The study therefore, recommends for more regulations toward a more competitive banking system with more innovative products tailored toward mobilization of savings and investment to growth induced sectors of the economy. Originality/value – This paper provides a time series perspective to the finance-growth nexus and highlights the potential contribution of effective banking development to the economic welfare of the Ghanaian citizens.

Trends in Banking

2016 ◽  
Author(s):  
Xavier Vives
Keyword(s):  
Economic Growth ◽  
Systemic Risk ◽  
Business Models ◽  
Banking Sector ◽  
Financial Innovation ◽  
Market Concentration ◽  
Shadow Banks ◽  
Regulatory Changes ◽  
The Relationship

This chapter discusses basic trends in the banking sector that are being driven by technological and regulatory changes. It first considers the expansion of banking and financial intermediation, the relationship between the growth of the financial sector and economic growth, and the link between financial innovation and systemic risk. In particular, it examines the role of market-based banking, securitization, and shadow banks in the 2007–2009 crisis. It then describes the evolution of business models in banking, the entry of new competitors to banks, and the evolution of competition. It also looks at the evolution of market concentration out of the consolidation move that has followed the transformation of banking. It shows that increasing competition and the transformation in the banking sector has developed in parallel with a process of concentration.

scholarly journals Relationship between financial innovation, financial depth, and economic growth

2021 ◽  
Vol 18 (4) ◽  
pp. 203-212
Author(s):  
Yuliia Shapoval
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Strong Predictor ◽  
Financial Innovation ◽  
Institutional Development ◽  
Developed Countries ◽  
General Notion ◽  
Financial Innovations ◽  
Financial Depth ◽  
The Relationship

The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the financial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.

Kazakhstan’s Economic Growth in the Context of the World Economy

2006 ◽  
pp. 133-146 ◽  
Author(s):  
K. Arystanbekov
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
World Economy ◽  
World Ocean ◽  
Direct Access ◽  
Crude Petroleum ◽  
Nation States ◽  
The World ◽  
The Relationship

Kazakhstan’s economic policy results in 1995-2005 are considered in the article. In particular, the analysis of the relationship between economic growth and some indicators of nation states - population, territory, direct access to the World Ocean, and extraction of crude petroleum - is presented. Basic problems in the sphere of economic policy in Kazakhstan are formulated.

PENGARUH PRODUK DOMESTIK BRUTO, INFLASI DAN RASIO GINI TERHADAP PENGANGGURAN TERBUKA DI PROVINSI DKI JAKARTA

2018 ◽  
Vol 14 (2) ◽  
Author(s):  
Sri Mahendra Putra Wirawan
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Economic Conditions ◽  
Research Model ◽  
Economic Region ◽  
Regression Methods ◽  
Price Increases ◽  
Comprehensive Picture ◽  
Development Goals ◽  
The Relationship

Gross Regional Domestic Product (GRDP) which provides a comprehensive picture of the economic conditions of a region is indicator for analyzing economic region development. Another indicator that is no less important is inflation as an indicator to see the level of changes in price increases due to an increase in the money supply that causes rising prices. The success of development must also look at the income inequality of its population which is illustrated by this ratio. One of the main regional development goals is to improve the welfare of its people, where to see the level of community welfare, among others, can be seen from the level of unemployment in an area. To that end, in order to get an overview of the effects of GRDP, inflation and the ratio of gini to unemployment in DKI Jakarta for the last ten years (2007-2016), an analysis was carried out using multiple linear regression methods. As a result, together the relationship between GRDP, inflation and the Gini ratio is categorized as "very strong" with a score of 0.936, and has a significant influence on unemployment. Partially, the GRDP gives a significant influence, but inflation and gini ratio do not have a significant influence. GDP, inflation and the Gini ratio together for the last ten years have contributed 81.4% to unemployment in DKI Jakarta, while the remaining 18.6% is influenced by other variables not included in this research model, so for reduce unemployment in DKI Jakarta, programs that are oriented to economic growth, suppressing inflation and decreasing this ratio need to be carried out simultaneously. Keywords: GRDP, inflation, unemployment, DKI Jakarta, GINI ratio  

INNOVATION CAPABILITY, ABSORPTIVE CAPACITY AND SMES PERFORMANCE IN PAKISTAN: THE MODERATING EFFECT OF BUSINESS STRATEGY

2018 ◽  
Vol 13 (Number 2) ◽  
pp. 1-11
Author(s):  
Muhammad Zulqarnain Arshad ◽  
Darwina Arshad
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
Business Strategy ◽  
Innovation Capability ◽  
Research Directions ◽  
Conceptual Paper ◽  
And Performance ◽  
New Research ◽  
The Relationship ◽  
Crucial Part

The small and medium-sized enterprises (SMEs) play a crucial part in county’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total businesses. The performance of SMEs depends upon many factors. The main aim for the research is to examine the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan. This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and SMEs Performance. Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in Pakistan’s SMEs context.

Belt and Road Initiative: Analysis of Possible Effects on Nigeria’s Economy

2018 ◽  
Vol 9 (06) ◽  
pp. 20475-20182
Author(s):  
Ige Ayokunle O ◽  
Akingbesote A.O
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
International Cooperation ◽  
Economic Cooperation ◽  
Belt And Road Initiative ◽  
International Economic Cooperation ◽  
R Project ◽  
Belt And Road ◽  
The Relationship ◽  
The Belt And Road

The Belt and Road initiative is an important attempt by China to sustain its economic growth, by exploring new forms of international economic cooperation with new partners. Even though the B&R project is not the first attempt at international cooperation, it is considered as the best as it is open in nature and does not exclude interested countries. This review raised and answered three questions of how the B&R project will affect Nigeria’s economy?  How will it affect the relationship between Nigeria and China? What could go wrong?, The review concluded that Nigeria can only benefit positively from the project.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

Sign in / Sign up

Export Citation Format

Share Document