scholarly journals Economic Growth, Institutional Quality and Financial Development in Middle-Income Countries

2019 ◽  
Author(s):  
Laura Heras Recuero ◽  
Roberto Pascual González
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Institutional Quality ◽  
Middle Income ◽  
Middle Income Countries

ICT Diffusion, Financial Development and Economic Growth: New Evidence from Low and Lower Middle-Income Countries

2016 ◽  
Vol 9 (3) ◽  
pp. 928-947 ◽  
Author(s):  
Anupam Das ◽  
Murshed Chowdhury ◽  
Sariah Seaborn
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Middle Income ◽  
Middle Income Countries ◽  
New Evidence

Is There an Institutional Trap in MICs?

2020 ◽  
pp. 69-93
Author(s):  
José Antonio Alonso
Keyword(s):  
Economic Growth ◽  
Institutional Change ◽  
Income Tax ◽  
Institutional Quality ◽  
Tax Revenue ◽  
Middle Income ◽  
Institutional Processes ◽  
Middle Income Countries ◽  
Per Capita ◽  
Income Tax Revenue

As countries progress, they require more complex institutions; however, economic and institutional processes frequently do not evolve at the same pace, as institutions are subject to greater inertia. This problem is particularly relevant in middle-income countries (MICs), as these countries experience episodes of intense economic growth. Therefore, the absence of institutional change can be a cause of a middle-income trap (MIT). The chapter discusses the criteria that define institutional quality, and examines the various ways in which institutional change occurs. Empirical exploration reveals the existence of two anomalous behaviors in middle-income regions: excessive institutional fluidity in Latin America and, in contrast, an excessive institutional stickiness in MENA. Based on prior works, the author explores the macro determinants of institutional quality. His results suggest that per capita income, tax revenue, redistribution (rather than mere inequality), education, and international openness all appear to be strong determinants of institutional quality.

scholarly journals The Direction of Causality between Economic Growth and Financial Development in Upper Middle-Income Countries

2021 ◽  
Vol 5 (1) ◽  
pp. 49-68
Author(s):  
Nagmi AİMER ◽  
Serkan DİLEK ◽  
Abdulmula LUSTA
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Middle Income ◽  
Middle Income Countries

Financial Development–Economic Growth Nexus: Evidence from South Asian Middle-income Countries

2017 ◽  
Vol 18 (4) ◽  
pp. 924-935 ◽  
Author(s):  
Krishna Murari
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
South Asian ◽  
Banking Sector ◽  
Middle Income ◽  
Market Capitalization ◽  
Middle Income Countries ◽  
Fixed Capital Formation ◽  
Domestic Credit

In this article, we have tried to explore the relationship between financial development and economic growth, using a panel data of South Asian middle-income countries for the years 1980–2013. The macroeconomic data include real GDP index as an indicator of economic growth, proxies for financial development—domestic credit by banking sector/GDP, domestic credit to private sector/GDP, net inflows of FDI/GDP, M2/GDP and market capitalization/GDP and control variables such as fixed capital formation/GDP, investment/GDP, and inflation in consumer prices/GDP. The results indicate that the domestic credit provided by the banking sector has a significant association with economic growth in both directions but domestic credit to the private sector is associated with the economic growth in forward direction only, which confirms dearth in credit allocation in the region and suggests pathetic financial regulation and supervision. As far as the stock market developments are concerned, the results indicate that the stock market capitalization and liquidity have a significant role in growth and economic growth induces the stock market capitalization (size). Both the forms of investment (domestic and FDI) contribute significantly to economic growth in either direction. Stronger financial institutions, fixed capital formation and low inflation are crucial growth controlling factors.

scholarly journals Sustainable Utilization of Financial and Institutional Resources in Reducing Income Inequality and Poverty

2021 ◽  
Vol 13 (3) ◽  
pp. 1038
Author(s):  
Atta Ullah ◽  
Zhao Kui ◽  
Saif Ullah ◽  
Chen Pinglu ◽  
Saba Khan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Development ◽  
Institutional Quality ◽  
Vital Role ◽  
Electronic Government ◽  
Sustainable Utilization ◽  
One Belt One Road ◽  
Institutional Resources ◽  
Belt And Road

This study aims to determine the role of globalization, electronic government, financial development, concerning the moderation of institutional quality in reducing income inequality and poverty in One Belt One Road countries. The electronic government and regional integration of the economies of the One Belt One Road countries has increased globalization and can play a vital role in reducing income inequality and poverty. However, this globalization and digital transformation of government systems can only be beneficial in the presence of good institutional quality. The sample includes 64 One Belt One Road countries from 2003 to 2018. We employed a two-step system generalized method of moment (Sys-GMM) and a robustness check through Driscoll–Kraay standard errors regression. Our findings show that globalization, economic growth, e-government development, government expenditure, and inflation have a statistically significant and negative impact on income inequality and are key to eradicating income inequality and poverty. On the other hand, financial development, gross capital formation, and population size positively influence income inequality, which causes an increase in poverty and income inequality as financial development and population levels increase. Moderating variable institutional quality also positively impacts income inequality, which means that institutional quality in Belt and Road Countries is weak, as they are mostly developing countries that need to improve their systems. Moreover, the marginal effect also revealed that institutional quality has a corrective effect on the factors’ relationship with income inequality. Our findings endorse and conclude that globalization and e-government development improve economic growth and eradicate poverty and income inequality by boosting digitalization, investments, job creation, and wage increases for semi-skilled and unskilled human capital in Belt and Road countries. The sustainable utilization of financial and institutional resources plays a vital role in reducing income inequality and poverty in Belt and Road countries.

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