Financial Development, Institutions, Gender and Entrepreneurship in the United Arab Emirates

2021 ◽  
Vol 11 (2) ◽  
pp. 11-22
Author(s):  
Afra Hameli ◽  
Ilias Kampouris ◽  
Amal Kamal Machaal ◽  
Charilaos Mertzanis
Keyword(s):  
Financial Development ◽  
United Arab Emirates ◽  
Macroeconomic Conditions ◽  
Development Indicators ◽  
Business Startup ◽  
Financial Depth ◽  
Development Institutions ◽  
New Business ◽  
Using Data ◽  
The Impact

The paper explores the role of financial development on entrepreneurship in the United Arab Emirates by using data on new business registration and new business density over the period 2006-2018. The country is undergoing a rapid transformation phase characterizzed by substantial efforts to boost private sector entepreneurship. The data is drawn from the World Bank’s World Development Indicators. We use the International Monetary Fund’s composite financial development index to capture financial development in the country. The index comprises information on financial depth, access and efficiency by both financial institutions and markets. The paper controls for the impact on the macroeconomic conditions, institutional factors, such as gender equality and the fear of failure, the innovation environment and the business startup environment. The results show that financial development is a robust predictor of entepreneurial activity in the UAE. Macroeconomic, institutional and innovation conditions further mediate the link in more or less significant ways.

Do market size and financial development indicators affect human capital of select south Asian economies?

2019 ◽  
Vol 46 (7) ◽  
pp. 887-903 ◽  
Author(s):  
Narayan Sethi ◽  
Bikash Ranjan Mishra ◽  
Padmaja Bhujabal
Keyword(s):  
Growth Rate ◽  
Human Capital ◽  
Financial Development ◽  
South Asian ◽  
Market Size ◽  
Content Type ◽  
Development Indicators ◽  
Long Run ◽  
Asian Economies ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate whether market size and its growth rate, along with financial development indicators, affect human capital in selected south Asian economies over the time period from 1984 to 2015. Design/methodology/approach The stationarity of the variables are checked by LLC, IPS, ADF and Phillips–Perron panel unit-root tests. Pedroni’s and Kao’s panel co-integration approaches are employed to examine the long-run relationship among the variables. To estimate the coefficients of co-integrating vectors, both PDOLS and FMOLS techniques are used. The short-term and long-run causalities are examined by panel granger causality. Findings From the empirical results, the authors found that both the market size and financial development play an important role in the development of human capital in the selected south Asian economies. It is evident that a large market size and faster degree of financial development in the selected countries result in better human capital formation. Originality/value There are a number of studies on the impact of financial development indicators on human capital and economic growth, but there is hardly any study that considers market size and its growth rate along with financial development indicators with human capital in the context of south Asian economies. The study fills this research gap.

scholarly journals Nonlinear Dynamics in the Finance-Inequality Nexus in China-CHNS Data

2019 ◽  
Vol 11 (1) ◽  
pp. 191 ◽  
Author(s):  
Mohammad Masudur Rahman ◽  
Guan Fuquan ◽  
Laila Arjuman Ara
Keyword(s):  
Financial Development ◽  
Low Income ◽  
Income Group ◽  
High Income Group ◽  
Middle Income ◽  
Linear Effect ◽  
Quantile Regression Model ◽  
Income Groups ◽  
Using Data ◽  
The Impact

This paper empirically investigates the effects of financial development on incomes of Chinese residents particularly within various income groups using data from six provinces by applying the Quantile Regression model. The Greenwood and Jovanovich hypothesis that illustrates the inverted U shaped relationship between financial development and income inequality is tested. This empirical study demonstrates that financial development has a positive but non-linear effect on the annual income of individuals from various income groups at different quantiles. The effect is an inverted U or Kuznets effect indicating an increase at first and then a drop. As for the distribution of the impact on various income groups, the low-income group is under the most dominant influence followed by the high-income group with the middle-income groups receiving relatively smaller influence. Findings indicate that promoting balanced financial development would help to ease the income gap between Chinese residents.

scholarly journals Direction of Causality between Financial Development and Economic Growth in Turkey

2021 ◽  
pp. 22-37
Author(s):  
Cengiz Yılmaz ◽  
Banu Demirhan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Gross Domestic Product ◽  
Financial Development ◽  
The Other ◽  
Development Indicators ◽  
Short Run ◽  
Causality Relationship ◽  
Using Data

This paper has investigated the causality relationship between financial development and economic growth in Turkey, using data from 2005:04 to 2020:03. We construct a time-series model to explore causality relationships between the variables. In the study, two indicators were used as financial development indicators: banking loans to the private sector and money supply to GDP (Gross Domestic Product). The empirical results have represented a bi-directional relationship between financial development and economic growth in the short run. On the other hand, we have not found a causality relationship in the long term.

scholarly journals Is Tourism and Energy Consumption Linked? Evidence from Australia

2021 ◽  
Vol 13 (19) ◽  
pp. 10800
Author(s):  
Avishek Khanal ◽  
Mohammad Mafizur Rahman ◽  
Rasheda Khanam ◽  
Eswaran Velayutham
Keyword(s):  
Energy Consumption ◽  
Gross Domestic Product ◽  
Financial Development ◽  
Primary Energy ◽  
Domestic Product ◽  
Development Indicators ◽  
Distributed Lag ◽  
Long Run ◽  
Using Data ◽  
Australian Bureau Of Statistics

Tourism contributes to the growth of an economy via earning foreign currencies and employment opportunities. However, tourism also contributes to greater energy consumption because of various tourist activities such as hotel accommodations and transportation. This study investigates the long-term cointegrating relationship between international tourist arrivals and primary energy consumption in Australia. In addition, the roles of gross domestic product, gross fixed capital formation, financial development, and total population on energy consumption are also examined. The study covered the last four decades (1976–2018) using data from the Australian Bureau of Statistics, BP Statistical Review, and the World Development Indicators. Augmented Dickey-Fuller, Phillips-Perron, Autoregressive distributed lag (ARDL) bound tests, Johansen and Juselius, Bayer-Hanck cointegration test, and several key diagnostic tests have been conducted to assess the relationship. The estimated results indicate that tourist arrivals, gross domestic product, and financial development have a significant long-run cointegrating relationship with energy consumption. Policy measures are suggested based on the findings of this study.

scholarly journals Economic Freedom, Country Risk and Cost Efficiency in Jordan and the GCC Countries

2018 ◽  
Vol 21 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Anwar Al-Gasaymeh
Keyword(s):  
Economic Freedom ◽  
Banking Sector ◽  
Stochastic Frontier ◽  
Banking System ◽  
Country Risk ◽  
Macroeconomic Conditions ◽  
Gcc Countries ◽  
Bank Structure ◽  
Using Data ◽  
The Impact

Using data from 2003 to 2010, we examine the impact of economic freedom and country risks on the bank costs of potential Gulf Cooperation Council (GCC) union. In estimating a common frontier, this article employs Stochastic Frontier Approach (SFA) to control for country-specific variables, that is, economic freedom, country risk, macroeconomic conditions, bank accessibility and bank structure, for an unbalanced panel of 90 Jordanian and the GCC countries’ banks. This article further estimates bank efficiency levels in the potential GCC union member countries to shed some light on the capability and capacity of the banks to compete and survive within the future GCC union. We find that economic freedom helps in reducing potential bank costs. Enhancing economic freedom is crucial for the region to attract more investments and create a viable banking system. In order for the GCC members to have a successful union and achieve the objectives faster, it is important to have a similar level of economic performance, in particular in the banking sector.

scholarly journals Interest Rate Deregulation, Bank Development And Economic Growth In South Africa: An Empirical Investigation

2010 ◽  
Vol 9 (11) ◽  
Author(s):  
Nicholas M Odhiambo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Interest Rate ◽  
Causal Relationship ◽  
Financial Development ◽  
Positive Impact ◽  
Strong Support ◽  
Prima Facie ◽  
Financial Depth ◽  
The Impact

In this paper the dynamic relationship between interest rate reforms, bank-based financial development and economic growth is examined – using two models in a stepwise fashion. In the first model, the impact of interest rate reforms on financial development is examined using a financial deepening model. In the second model, the dynamic causal relationship between financial development and economic growth is examined, by including investment as an intermittent variable in the bi-variate setting, thereby creating a simple tri-variate causality model. Using cointegration and error-correction models, the study finds strong support for the positive impact of interest rate reforms on financial development in South Africa. However, contrary to the results from some previous studies, the study finds that financial development, which results from interest rate reforms, does not Granger cause investment and economic growth. In addition, the study finds a uni-directional causal flow from investment to financial development and prima-facie causal flow from investment to growth. The study, therefore, concludes that although interest rate reforms impact positively on financial depth in South Africa, the causal relationship between financial depth and economic growth tends to take a demand-following path. Moreover, given the causal flow from investment to financial development and a prima facie causal flow from investment to growth, it is likely that the economic development in South Africa is driven largely by the growth of the real sector rather than the financial sector.

Does financial development matter for domestic investment? Empirical evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niharika Sinha ◽  
Swati Shastri
Keyword(s):  
Financial Development ◽  
Principal Component ◽  
Domestic Investment ◽  
Bounds Testing ◽  
Causality Test ◽  
Content Type ◽  
Development Indicators ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

PurposeThis paper empirically examines the impact of financial development on domestic investment in India for the period 1989–2017.Design/methodology/approachThis study employs the autoregressive distributed lag (ARDL) bounds testing approach to co-integration to test the long-run relationship between financial development and domestic investment. To test the direction of causality, Toda–Yamamoto causality test and vector error correction model (VECM) Granger causality/Block Exogeneity Wald test have been employed. Investment has been measured by Gross Capital Formation. To capture various aspects of financial development in India, eight alternative indicators (both bank based and market based) have been used. With the help selected indicators, a composite index (FINDEX) of financial development has been constructed using principal component analysis (PCA).FindingsThe estimated result finds evidence in favour of positive, short-run and long-run impact of financial development on investment in the Indian economy. Both bank-based and market-based indicators are found to significantly affect the level of investment. The significant effect of efficiency-based financial development indicators (both bank based and market based) upon domestic investment implies that there is a need to implement policies that ensure the efficiency of financial intermediation.Originality/valueTo the best of authors' knowledge, not much research has been done to explore the relationship between financial development and domestic investment, especially in the case of Indian economy. This study also tries to find the impact of bank-based and market-based financial development indicators upon domestic investment to explore banks vs market issue.

OCCUPATIONAL SEGREGATION IN THE MALAYSIAN LABOR MARKET: EVIDENCE ON THE L INDEX

2011 ◽  
Vol 56 (03) ◽  
pp. 397-421 ◽  
Author(s):  
SIEW CHING GOY ◽  
GERAINT JOHNES
Keyword(s):  
Multivariate Analysis ◽  
Labor Market ◽  
Occupational Segregation ◽  
Time Variable ◽  
Full Model ◽  
Dissimilarity Index ◽  
Macroeconomic Conditions ◽  
Alternative Approach ◽  
Using Data ◽  
The Impact

Empirical research on occupational segregation has conventionally measured it with Duncan dissimilarity index. This paper adopts an alternative approach — the L index — using the multivariate analysis introduced by Spriggs and Williams, which we extend to explore the impact of economic development on occupational segregation. This enables us to investigate the importance of individuals' attributes in explaining the segregation. Using data from the Labor Force Survey between 1985 and 2005, our results indicate that the L index controlling only for sex is substantial and persistent. However, the full model L index generally implies that occupational segregation has widened after controlling for individuals' attributes. It is found that segregation in the Malaysian labor market is mainly explained by gender, which, on average, accounts for 82% of the segregation. When a measure of macroeconomic conditions and a time variable economic are factored into the model that controls for gender only, the L index remains unchanged.

scholarly journals South Africa’s Financial Development and its Role in Investment

2018 ◽  
Vol 7 (1) ◽  
pp. 101-120 ◽  
Author(s):  
Brian Muyambiri ◽  
N.M. Odhiambo
Keyword(s):  
South Africa ◽  
Financial Development ◽  
Positive Impact ◽  
Investment Model ◽  
Model Composite ◽  
Enhancing Effect ◽  
Development Indicators ◽  
Long Run ◽  
Short Run ◽  
The Impact

AbstractThis study investigates the impact of financial development on investment in South Africa between 1976 and 2014. The model estimated is based on the flexible accelerator investment model. Composite indices for bank-based and market-based financial development indicators are used as explanatory variables. The estimated model postulates that both bank-based financial development and market-based financial development have an acceleratorenhancing effect on investment. Results show that market-based financial development has a positive impact on investment in the long run, while bank-based financial development has a negative effect in the short run. Implications are that, for South Africa, market-based financial development has a positive accelerator-enhancing effect on investment in the long run. In contrast, bank-based financial development is found to have a negative accelerator enhancing effect on investment in the short run.

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