scholarly journals A Study of the Spatial Effects of Financial Support and Economic Growth under Optimal Control of Nonlinear Generalized Complex Systems

2022 ◽  
Vol 2022 ◽  
pp. 1-11
Author(s):  
Xuexue Tang
Keyword(s):  
Economic Growth ◽  
Financial Support ◽  
Financial System ◽  
Three Dimensions ◽  
Financial Constraint ◽  
Real Economy ◽  
Spatial Effects ◽  
Corporate Sector ◽  
The Real ◽  
Generalized Complex

This paper provides an in-depth analysis and study of the spatial effects of financial support and economic growth with the help of nonlinear generalized complex systems. Taking the industrial sector as the research object and combining the relevant contents of neoclassical investment theory, information economics, and institutional economics, this paper clearly defines and argues that the main feature of current financial policy is financial constraint rather than financial inhibition based on an in-depth understanding of the theoretical connotation and policy rationality of financial constraint and, as a premise, further analyzes the financial constraint policy causing excessive investment and capital mismatch in the corporate sector. It further analyzes the mechanism of the role of financial constraint policies in causing overinvestment and capital mismatch in the corporate sector and conducts empirical tests from three research perspectives of measuring investment efficiency, output efficiency of investment, allocation efficiency of industry capital, and investment behavior of microenterprises, and finally puts forward relevant policy recommendations in conjunction with the evaluation of the efficiency of financial constraint policies. This paper selects three dimensions of the financial system, namely, financial structure, financial efficiency, and financial scale, and studies the adaptability between these three dimensions and the development of the real economy, respectively, and then uses different empirical methods to analyze the dynamic adaptability effects between the development of the real economy and these three dimensions of the financial system and finally explores the way of adaptability between the financial system and the development of the real economy. This paper provides a medium and micro theoretical basis and new empirical evidence for understanding the importance of financial system reform on economic growth and also opens up a space for exploring the exit path of financial constraints and using interest rate marketization as a general grip to reasonably guide financial resources to achieve economic transformation and upgrading and sustainable and healthy development through supporting high-quality investment, using more interprovincial level data in the analysis, so it is more comprehensive and detailed than previous scholars’ studies. The examination is more comprehensive and detailed than previous scholars’ studies.

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 Transformation of the Banking Sector of Ukraine: Reasons and Consequences

2017 ◽  
Vol 1 (13) ◽  
pp. 33-48
Author(s):  
Myroslava Khutorna
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Financial System ◽  
Market Concentration ◽  
The Other ◽  
Real Economy ◽  
The Real ◽  
Other Hand ◽  
The One

This paper is devoted to the consideration of the preconditions and results of the banking sector of Ukraine transforming, its influence on the sector’s productivity, stability and significance for the real economy. It’s grounded that banking sector of Ukraine has seriously weakened its potential for the economic development stimulation. On the one hand, due to the banking sector clearance from the bad and unscrupulous banks the system has become much more sensitive to the monetary instruments and its state is going to be more predictable and better controlled. But on the other hand, massive banks’ liquidations have caused the worsening of the confidence in financial system and radical increasing of the market concentration the highest degree of which is observed in the householders’ deposit market.

Dynamic interactions between stock markets and the real economy

2016 ◽  
Vol 11 (4) ◽  
pp. 715-746 ◽  
Author(s):  
Nikiforos T. Laopodis ◽  
Andreas Papastamou
Keyword(s):  
Economic Development ◽  
Stock Market ◽  
Methodological Approach ◽  
Financial System ◽  
Cointegration Analysis ◽  
Policy Implications ◽  
Real Economy ◽  
Dynamic Interactions ◽  
Content Type ◽  
The Real

Purpose The purpose of this paper is to re-examine the relationship between a country’s aggregate stock market and general economic development for 14 emerging economies for the period from 1995 to 2014. Design/methodology/approach The methodological approach of the paper is multifold. First, the authors use cointegration analysis to determine the simple dynamics among the variables. Second, the authors utilize vector autoregression analysis to study the dynamics among the variables for the 14 countries. Third, the authors employ panel analysis to determine common variations among the variables and across countries. Findings When examining the linkage between the stock market and economic development, proxied by gross domestic product growth or with gross fixed capital formation growth, the authors did not find a meaningful relationship between them. However, when the authors included additional control variables strong, dynamic interactions between the two magnitudes surfaced. Specifically, it was found that the stock market is positively and robustly correlated with contemporaneous and future real economic development and, thus, it directly contributed to a country’s economic development either through the production of goods and services or the accumulation of real capital. Thus, it can be inferred that the stock market alone is not capable of boosting economic development in these countries unless being part of a comprehensive financial system (which includes banks) as well as investment in real capital. Research limitations/implications The policy implications are clear. Government authorities must recognize that the stock market alone is not a driver of economic development and that a sound, efficient financial system (which includes banks) must be present in order to contribute and foster economic development. Originality/value The study is original in the sense that it examines various financial and economic variables to determine the degree of (or dynamic interactions among) the stock market and the real economy for each and all emerging markets in the sample.

Contemporary Survey on the Empirical Literature of Islamic Finance and Economic Growth Relationship

2019 ◽  
Vol 8 (2) ◽  
pp. 14-26
Author(s):  
Ibrahim Musa Gani ◽  
Zakaria Bin Bahari
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Significant Contribution ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Islamic Finance ◽  
Real Economy ◽  
The Real ◽  
Long Run ◽  
Short Run

Financial sector activities are part of the main ingredients for the growth of any economy. The financial activities that were most widely practiced are Interest-based conventional financial activities which are prohibited in Islam. Thus, non-interest Islamic financial activities were introduced and it has been accepted and practiced all around the globe. Therefore, this study surveyed, explored and analysed using library review method, the empirical studies conducted on Islamic finance and the economic growth nexus. The study revealed that the majority of the findings of the empirical studies are in support of a positive and significant contribution of Islamic finance to the growth of the real economy in short run and long run, few of the findings indicate an insignificant contribution. The causal relationship between Islamic finance and growth is mostly bi-directional as reported in many of the studies, but supply leading hypothesis also emerged in some of the few studies. It was concluded that Islamic finance is immensely contributing to the growth of the real economy.

scholarly journals THE REAL SECTOR OF UKRAINIAN ECONOMY CAPITALIZATION: TRENDS AND CONSEQUENCES

2018 ◽  
pp. 7-21 ◽  
Author(s):  
Vladyslav ZYMOVETS ◽  
Kateryna BAGATSKA
Keyword(s):  
Economic Growth ◽  
Corporate Finance ◽  
Financial System ◽  
Equity Capital ◽  
System Stability ◽  
Real Sector ◽  
Book Value ◽  
The Real ◽  
Low Level ◽  
Value Equity

Introduction. The main trends in the corporate finance of Ukraine hardly could be explained with the traditional corporate finance frameworks which the trading-off or pecking order approaches included. In the beginning of 2017, the whole corporate sector indebtedness (calculated as total unconsolidated debt to book value based equity ratio) was substantially higher than a proper level for emerging markets countries. The restoring of the real sector equity capital sufficiency is crucial for the whole financial system stabilization and investments fostering. Purpose. The investigation of the book value decapitalization in real sector of Ukrainian economy scale and its potential impact on the financial system stability and economic growth assessment. Methods. International comparisons of the total book value capital to GDP ratios, the real book value capital (denominated by GDP deflator) trends and structural changes investigation. Results. The volume and the dynamics of the book value capitalization in Ukrainian economy’s real sector are investigated. The overall level of capital losses is determined (18% decline with 5 years) and significant structural imbalances are revealed. The trends of real sector book value equity changes analyzed comparing with the nominal GDP changes trends in Ukraine and foreign countries. A comparative analysis trends of real sector capital return in Ukraine and some European countries is conducted. The total book value capital to GDP ratio in Ukraine does not differ significantly from other countries. We explain these results capital by the low level of GDP in Ukraine and not by the book value capital sufficiency. The low level of legal productivity the real sector aggregate equity capital in Ukraine is determined. The share of accumulated capital in real sector book value equity in Ukraine was closed to 0 and fall negative in 2017. We explain this by the low level of legal productivity of equity capital in Ukraine. Conclusion. The capital accumulation in the real sector of Ukrainian economy is structurally deteriorated and generates significant risks for the stability of ountry financial system. The lack of capital in real sector hardly can be compensated by the financial sector and government investments. Thus, we can conclude that deficiency of equity in real sector is a strong barrier for the economic growth.

scholarly journals The importance of the financial system for the real economy

2016 ◽  
Vol 53 (4) ◽  
pp. 1553-1586 ◽  
Author(s):  
Sebastian Ankargren ◽  
Mårten Bjellerup ◽  
Hovick Shahnazarian
Keyword(s):  
Financial System ◽  
Real Economy ◽  
The Real

Quantitative modeling of mathematical relationships in money, spending and the real economy

Kybernetes ◽  
2016 ◽  
Vol 45 (2) ◽  
pp. 323-336 ◽  
Author(s):  
Masudul Alam Choudhury ◽  
M. Ishaq Bhatti
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Commercial Bank ◽  
Quantitative Modeling ◽  
Real Economy ◽  
Causal Relations ◽  
Content Type ◽  
The Real ◽  
Unity Of Knowledge

Purpose – The purpose of this paper is to bring out the topic of ethics and economics in reference to the nature of complementarities that can exist between monetary and fiscal activities. The connector in such complementarities is the unity of knowledge that can be generated in the inter-causal relations between monetary and fiscal activities. Design/methodology/approach – The methodology adopted is of measuring out by quantitative modeling how well there exists complementary relations or otherwise between the Central Bank and commercial bank in order to mathematically explain the role of participatory learning behavior using money, debt, and spending variables. Findings – The argument placed takes the conceptual form of result to show that there would be a prolonged extension of the non-inflationary and technological induction of economic growth in a regime of complementing money and fiscal policies. Originality/value – The role of the quantity of money in a non-inflationary economic growth is set against the background of the tripartite inter-causal relationships between the Central Bank, the commercial bank, and the real economy. Analytical methods used bring out the role of knowledge in the inter-causal relations termed as circular causation for the attainment of social well-being in response to a stable and advancing economy with the ethicality of unity of knowledge.

scholarly journals Macroprudential Policies and Economic Growth

2019 ◽  
Vol 12 (1) ◽  
pp. 95-112
Author(s):  
Alin Marius Andries ◽  
Florentina Melnic
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Financial Institutions ◽  
Financial System ◽  
Gdp Per Capita ◽  
Real Economy ◽  
Beneficial Effects ◽  
Macroprudential Policies ◽  
Systemic Risks ◽  
Per Capita

AbstractIn this paper we assess the effectiveness of macroprudential policies in ensuring a sustainable contribution of the financial sector to economic growth. Our results sustain that macroprudential policies have beneficial effects on economic growth, expressed by the GDP per capita growth rate. Macroprudential policies, adopted to strengthen the resilience of the financial system and decrease the buildup of systemic risks, contribute to the economic growth by assuring a stable financial system, and, therefore, a healthier financial-macro relationship. Macroprudential policies that target financial institutions have greater impact on real economy compared with borrower-related macroprudential policies.

scholarly journals Counter-cyclical adjustment of monetary policies and development of the real economy post the Covid-19 pandemic

2021 ◽  
Vol 235 ◽  
pp. 01065
Author(s):  
Shuqin Wu
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Service Providers ◽  
Transmission Efficiency ◽  
Financial Service ◽  
Monetary Transmission ◽  
Real Economy ◽  
Monetary Policies ◽  
The Sustainable Development ◽  
The Real

With the coronavirus kept in check, China sees an economic rebound and robust economic growth. From the angle of economics, this paper interprets China’s orientation in monetary policies post the pandemic, and the prudent monetary policies are prospective, targeted policies that meet the requirements for countercyclical adjustments. The financial service providers improved in quality and efficiency, the monetary transmission efficiency was enhanced, and multiple financial service providers have jointly promoted the sustainable development of the real economy.

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