Empirical Study on the Relationship between Financial Development and Economic Growth in China Based on Maximum Flow Algorithm

2021 ◽  
Vol 7 (5) ◽  
pp. 4463-4473
Author(s):  
Qiao Wang
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Influencing Factor ◽  
Maximum Flow ◽  
Theoretical Research ◽  
Particle Swarm Algorithm ◽  
Model Parameters ◽  
Factors Affecting ◽  
Flow Algorithm ◽  
The Relationship

Objectives: The relationship between finance and economic growth has always been one of the hot issues in theoretical research and empirical analysis. As one of the important factors affecting economic growth, finance has long been recognized by the majority of scholars. Methods: In the context of the development of Internet e-commerce, empirical research on the relationship between China’s financial development and economic growth is conducted based on the maximum traffic algorithm. Results: Based on this, this paper constructs the Probit and Logistic binary discrete selection model for economic growth, and the discrete particle swarm algorithm is used to solve the sequence of influencing factors, estimating the model parameters, and the degree of influence of each influencing factor is calculated. Conclusion: The degree of concurrent employment is a decisive factor in economic growth.

The Impact of Rural Finance on Rural Economic Development from the Perspective of Efficiency of Discrete Differential Algorithm

2021 ◽  
Vol 7 (5) ◽  
pp. 4358-4365
Author(s):  
Mingxu Peng ◽  
Jiawen Huang
Keyword(s):  
Economic Growth ◽  
Rural Economy ◽  
Choice Model ◽  
Influence Factors ◽  
Maximum Flow ◽  
Pso Algorithm ◽  
Significant Degree ◽  
Theoretical Research ◽  
The Impact ◽  
The Relationship

Objectives: Finance is the core of the national economy. The development of modern rural economy is inseparable from financial support. The relationship between finance and economic growth has always been one of the hot topics in theoretical research and empirical analysis. Methods: Under the background of the development of Internet e-commerce, the maximum flow algorithm was based on the empirical research on the relationship between China’s financial development and economic growth. Results: Based on this, the two-element discrete choice model of Probit and Logistic for economic growth was constructed. Discrete particle swarm optimization (PSO) algorithm was used to estimate the parameters of the model. The significant degree of the influence factors was calculated. Conclusion: Finally, it was calculated that concurrent business was the decisive factor of economic growth.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

scholarly journals Financial development and growth in Hungary

2015 ◽  
Vol 5 (3) ◽  
pp. 205-213
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Trend Analysis ◽  
Financial Development ◽  
Case Study Approach ◽  
Study Approach ◽  
Clear Cut ◽  
Single Study ◽  
The Relationship

This study investigated the relationship between financial development and economic growth in Hungary using a case study approach. Majority of previous studies on the same or similar topic have so far used regression and or econometric methodologies to examine the nature of the relationship between financial development and economic growth. Not a single study the author is aware of used a case study approach to discuss the relationship between the two variables. It is against this background that the author decided to use the case study approach that allows the author to really deepen an understanding of the relationship between the two variables in Hungary. Apart from being narrowly focused on regression or econometric approaches, previous studies on the same or similar topic in Hungary excluded a broad range of financial development variables. The current study departs from these previous studies as it used a case study approach and taken into account a broad range of financial development variables. From the trend analysis done in section 3, it appears that the relationship between financial development and growth in Hungary during the period under study is not clear. A definite and clear cut conclusion could not be reached about the relationship between the two variables in Hungary hence the use of econometric data analysis approaches in conjuction with the case study approach is recommended.

Financial Development and Economic Growth

2015 ◽  
pp. 233-245
Author(s):  
Filiz Eryılmaz ◽  
Hasan Bakır ◽  
Mehmet Mercan
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
New Zealand ◽  
Financial Development ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Annual Data ◽  
The Subject ◽  
The Relationship

The relationship between financial development and economic growth has been the subject of considerable debate in development and growth literature. Therefore this chapter provides evidence on the role of financial development in accounting for economic growth in 23 OECD countries (Italy, Japan, Luxemburg, Holland, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, England, USA, Australia, Austria, Belgium, Canada, Denmark, Finland, Turkey, France, Germany, Greece, Iceland) via panel data analysis using the annual data for the period 1980-2012. The authors find a positive relationship between financial development and economic growth for all countries. Also this result means that financial development leads economic growth in these countries. So the results may help policymakers formulate effective financial sector policies as a tool to promote economic growth.

scholarly journals Financial Development and Economic Growth in ASEAN-5 Countries

2018 ◽  
Vol 20 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Chinnasamy Agamudai Nambhi Malarvizhi ◽  
Yashar Zeynali ◽  
Abdullah Al Mamun ◽  
Ghazali Bin Ahmad
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Economic Efficiency ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Significant Positive Effect ◽  
Domestic Investment ◽  
The Relationship ◽  
Physical Capital Accumulation ◽  
Positive Effect

This article explores the relationship between financial sector development and economic growth, using a sample of ASEAN-5 countries (Malaysia, Indonesia, Singapore, Thailand and Philippines) from 1980 to 2011. More specifically, this study investigates whether higher levels of financial development (FD) are significantly and robustly correlated with faster current and future rates of economic growth, physical capital accumulation and economic efficiency improvements. Findings of this study revealed that FD has a significant positive effect on economic growth. However, the estimated models show that the influence of FD, as a determinant for economic growth of ASEAN-5 countries, is less than that of domestic investment and export.

scholarly journals Institutions and development in MENA region: evidence from the manufacturing sector

2015 ◽  
Vol 42 (8) ◽  
pp. 717-732 ◽  
Author(s):  
Mahmoud Arayssi ◽  
Ali Fakih
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Political Institutions ◽  
Civil Law ◽  
Institutional Setting ◽  
Mena Region ◽  
Content Type ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – The purpose of this paper is to study the role of institutions (including civil law origin), financial deepening and degree of regime authority on growth rates in the Middle East and North Africa region. Design/methodology/approach – This paper examines the implications of industrial firm-related and national factors for the determinants of economic growth using panel data through a fixed effect model. Findings – The results reveal that English civil law origin and the establishment of the rule of law work with the development of financial institutions to increase economic growth in these economies; however, the democratization of the political institutions and foreign direct investment do not assist financial development in promoting economic growth. Research limitations/implications – Data covered is limited to four years. Social implications – The findings emphasize the prominence of overcoming institutional weaknesses and establishing transparent public policy governing businesses as a pre-requisite for successful universal integration in developing countries. Originality/value – This paper contributes to the literature on the relationship between finance and economic growth in two aspects. First, the authors focus on the contribution of the institutional setting and its interaction with the financial development and how this affects economic growth of the manufacturing firms. Second, the authors explore the relationship between the role of institutions, governance, the country civil law origin and the economic growth.

scholarly journals The relationship between foreign direct investment, financial development and growth economic in Next-11 Countries: a PMG/ARDL estimation

Management ◽  
2021 ◽  
Vol 25 (1) ◽  
pp. 28-50
Author(s):  
Bilal Louail ◽  
Mohamed Salah Zouita
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Estimation Method ◽  
Distributed Lag ◽  
Dynamic Relationship ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
Lag Model ◽  
The Relationship

Summary This study investigates the relationship between FDI, economic growth and financial development in the Next 11 countries. An analysis of the results was performed accordingly on the panel data gathered from the Next 11 countries from 1985 to 2019— using the Pooled Mean Group (PMG) estimation method and the Autoregressive Distributed Lag model approach (ARDL). The results indicate an impact of both economic growth and financial development on the FDI flows to the study of countries during the period between 1985 and 2019 in the long run, while no such proof is affirmed in the short run. This study’s contribution provides a better understanding of the dynamic relationship between FDI, economic growth, and financial development by providing decision-makers to understand the nature of the dynamic association between the study variables. This study provides empirical evidence about the association between inflows of FDI, economic growth and financial development within the context of the Next-11 countries. The previous literature lacks empirical study on the relationship between variables of study for the Next-11 countries.

scholarly journals THE NEXUS BETWEEN TAX REFORMATION, FINANCIAL DEVELOPMENT AND ECONOMIC RECOVERY: THE CASE OF MALAYSIA

2018 ◽  
Vol 24 (3) ◽  
pp. 1258-1279 ◽  
Author(s):  
Roshaiza TAHA ◽  
Jūratė ŠLIOGERIENĖ ◽  
Nanthakumar LOGANATHAN ◽  
Izolda JOKŠIENĖ ◽  
Muhammad SHAHBAZ ◽  
...  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Global Economy ◽  
Time Series Data ◽  
Series Data ◽  
Tax Revenue ◽  
Causality Analysis ◽  
Annual Time Series ◽  
New Policies ◽  
The Relationship

The main purpose of this paper is to establish the plausibility and the dynamic nexus between financial developments, economic growth and tax revenue in Malaysia. The analysis of these relationships is vital considering the instability of the global economy which has affected growth. In this study, we employed annual time series data covering the period of 1970–2015. Using advanced co-integration and causality analysis, we found strong evidence on the relationship between each of the examined variables. The results from this study provide evidence on the taxes-growth nexus for Malaysia. An inverted U-shaped relationship is found between financial development and tax collection, while a U-shape reflects the economic condition. The nexus between economic growth and tax revenue enhances fiscal policies in the creation of transparent and mature financial systems which will further boost the collection of government revenues in Malaysia. The results of this study may provide an avenue for researchers and policymakers to understand the nature of the relationship between the examined variables and further assist in the formulation of new policies for economic sustainability.

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