scholarly journals Financial development and economic growth in the CEPGL region: evidence based on panel data

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Alexis Nyamugira Biringanine ◽  
Kazamwali Mzee
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Fixed Effects ◽  
Economic Status ◽  
Financial System ◽  
Fixed Effects Model ◽  
Correction Model ◽  
Bidirectional Relationship ◽  
The Relationship

This paper contributes to the huge debate on the relationship between financial development and the economic growth. The evidence is applied to the CEPGL (Communauté Economique des Pays des Grands Lacs) region. Previous studies have concluded either to the absence of connection between the two spheres, to a unidirectional or bidirectional relationship, or to a differentiated connection depending on the economic status of development of the country. The research design applied in this research has been inspired by the reality of the region by running an Error Correction Model for each country and a fixed effects model on panel data for the whole region. Therefore, we estimated econometric models from a series of macroeconomic data relating to the depth, and the accessibility of the financial system. The data used in this study range from 1976 to 2013. Insights from this study show that the financial system of the region is extremely underdeveloped, a weak connection between the financial and the economic sphere, in addition to an ambivalent sense of causality. 

scholarly journals Financial development and economic growth in the CEPGL region: evidence based on panel data

2020 ◽  
Vol 39 (1) ◽  
Author(s):  
Alexis Nyamugira Biringanine ◽  
Kazamwali Mzee
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Fixed Effects ◽  
Economic Status ◽  
Financial System ◽  
Fixed Effects Model ◽  
Correction Model ◽  
Bidirectional Relationship ◽  
The Relationship

This paper contributes to the huge debate on the relationship between financial development and the economic growth. The evidence is applied to the CEPGL (Communauté Economique des Pays des Grands Lacs) region. Previous studies have concluded either to the absence of connection between the two spheres, to a unidirectional or bidirectional relationship, or to a differentiated connection depending on the economic status of development of the country. The research design applied in this research has been inspired by the reality of the region by running an Error Correction Model for each country and a fixed effects model on panel data for the whole region. Therefore, we estimated econometric models from a series of macroeconomic data relating to the depth, and the accessibility of the financial system. The data used in this study range from 1976 to 2013. Insights from this study show that the financial system of the region is extremely underdeveloped, a weak connection between the financial and the economic sphere, in addition to an ambivalent sense of causality. 

scholarly journals The Determinants of Economic Growth in CEMAC through a Panel Data Approach

2016 ◽  
Vol 4 (2) ◽  
pp. 483
Author(s):  
Nzingoula Gildas Crepin
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Central Africa ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Main Determinants ◽  
Determinants Of Economic Growth

<div><p><em>This article highlights through a panel data approach the determinants of economic growth; observed over the last decade in the Economic and Monetary Community of Central Africa (CEMAC) and necessary to reach emerging economies stage. To do this, we essentially used Stata 12 software to come up with the results, and a panel data sample comprising six CEMAC member states, namely Congo, Cameroon, Gabon, Equatorial Guinea, Central African Republic and Chad, for the period ranging from 2000 to 2013. The results obtained after estimating ordinary least squares, fixed effects model, random effects model, generalized method of moments (GMM) and specification tests show that the best model to estimate these types of data is the fixed effects model. Besides, the main determinants of economic growth in CEMAC over that period are Foreign Direct Investment (FDI) and loans lending to the economy (LOAN). After estimation, FDI is found positive and significant on economic growth, while LOAN is significant and found negative maybe due to lack of good governance.</em></p></div>

scholarly journals Media and Economic Growth: Country Groups Difference via Panel Data

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Viktoriia Ahapova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Press Freedom ◽  
Foreign Direct Investments ◽  
Fixed Effects Model ◽  
Data Set ◽  
The Press ◽  
Per Capita

The present article investigates the link between economic growth, namely GDP per capita, and the media activity represented with the indicator of the press freedom alongside other factors such as infrastructure, institutional conditions, and foreign direct investments. A panel of 179 countries was used for the period from 2000 to 2015. In particular, we run two panel data analysis models, fixed effects and random effects models, and examined their output with Hausman’s specification test, which pointed the fixed effects model as more efficient for the presented data set. However due to the presence of serial correlation, heteroskedastic, and cross-panel dependence, a Prais-Winsten regression with panel corrected standard errors (PCSE) was implemented. The comparative analysis of models of four country groups, divided by GNI per capita, was conducted. Both statistically significant correlation coefficients and models’ output provided evidence of an association between economic growth and the press activity.

scholarly journals Financial Development and Economic Growth: Evidence from a Heterogeneous Panel of High Income Countries

2007 ◽  
Vol 12 (1) ◽  
pp. 1-34 ◽  
Author(s):  
A.R. Kemal ◽  
Abdul Qayyum Abdul Qayyum ◽  
Muhammad Nadim Hanif
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Fixed Effects ◽  
Empirical Relationship ◽  
High Income ◽  
Causality Analysis ◽  
Panel Estimation ◽  
Panel Causality ◽  
Heterogeneous Panel ◽  
The Relationship

This paper examines the empirical relationship between financial development and economic growth for high income countries. The study focuses on both indirect finance and direct finance, separately as well as jointly. Applying the methodology of Nair-Reichert and Weinhold (2001) for causality analysis in heterogeneous panel data, two sets of results are reported. First, the evidence regarding the relationship between financial development and economic growth from a contemporaneous non-dynamic fixed effects panel estimation is mixed. Negative and statistically significant estimates of the coefficient of the inflation and financial development interaction variable indicate that financial sector development may even be harmful to economic growth when inflation is rising. Second, in contrast with the recent evidence of Beck and Levine (2003), heterogeneous panel causality analysis applied on a refined model indicates that there is no definite evidence that finance spurs economic growth or growth spurs finance. Most of our findings are in line with the Lucas (1988) view that the importance of financial matters is overstressed. The only exception is the case of activity in stock markets where our result supports the Robinson (1952) view that finance follows enterprise.

scholarly journals Financial Development, FDI and Economic Growth——A Research Based on the Mediation Effect Model

2021 ◽  
Vol 251 ◽  
pp. 01087
Author(s):  
Li Miao
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Development ◽  
Fixed Effects ◽  
Mediation Effect ◽  
Fixed Effects Model ◽  
Effect Model ◽  
Empirical Tests ◽  
National Perspective ◽  
The Individual

According to the mechanism of financial development, FDI and economic growth, this paper uses the individual fixed effects model and the mediation effect model of 31 provinces and cities in China from 2000 to 2019 to conduct empirical tests. The research results show that from a national perspective, the improvement of China’s financial development level can significantly promote economic development. Secondly, from the perspective of regional samples, the financial development of the eastern provinces has a more significant impact on the economy, while the financial development of the central and western provinces has a limited impact on the economic development. Thirdly, from the perspective of FDI intermediary, financial development can significantly promote the improvement of economic level through FDI.

scholarly journals An Empirical Analysis of Obesity Kuznets Curve Model for the Eurasian Economic Union

2021 ◽  
Author(s):  
Ayşe Öcal
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Empirical Analysis ◽  
Fixed Effects ◽  
Kuznets Curve ◽  
Fixed Effects Model ◽  
Eurasian Economic Union ◽  
Curve Model ◽  
Economic Union ◽  
The Relationship

This paper aims to analyse the relationship between obesity and economic growth in the context of the Obesity Kuznets Curve model for the Eurasian Economic Union for the years between 2000-2016. The relationship between obesity rates and the real gross domestic product has been examined for the Eurasian Economic Union in the context of the Obesity Kuznets Curve model using the fixed-effects model. The results show that the Obesity Kuznets Curve Model is valid for the Eurasian Economic Union. Therefore, this paper points out that the relationship between obesity rates and economic growth within the Eurasian Economic Union is non-linear.

The Relationship Between Financial Development, Innovation and Economic Growth

2019 ◽  
pp. 462-479
Author(s):  
Asuman Koc Yurtkur
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
System Development ◽  
Financial System ◽  
Empirical Literature ◽  
Development Economic ◽  
Development Indicators ◽  
Theoretical Approaches ◽  
The Subject ◽  
The Relationship

Along with the globalization process, the relationship between the existence of an advanced financial system, financial development and economic growth has become one of the most debated issues. The financial system, development and development indicators, which play an important role in the overall success levels of the economy, are among the topics to be considered due to this importance. In this study, financial development, economic growth, and theoretical approaches are discussed. Moreover, the fact that the subject is empirically presenting evidence requires examination of this situation with studies in the literature. The presence of the findings obtained empirically, in particular Turkey's economy has made it necessary to include a large empirical literature. The generally accepted financial development indicators, which provide comparability in terms of countries, are examined in terms of financial markets and financial institutions in terms of depth, access, stability and efficiency during the period 2005-2015.

The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries

2020 ◽  
pp. 206-226
Author(s):  
Metin Gürler ◽  
Funda Kara
Keyword(s):  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Fixed Effects Model ◽  
Causality Test ◽  
Section Data ◽  
Main Determinants ◽  
The Relationship

This chapter investigates the relationship between the OECD-FRRI issued by OECD and IMF-FDI issued by IMF for 36 OECD member countries. Cross-section data (CSD) analysis and panel data (PD) analysis consisting of random and fixed effects estimations were used in the study to investigate the relationship between Foreign Direct Investment (FDI) and Financial Development for OECD countries for the years 1997, 2003, and 2006 and the 7-year period of 2010-2016. Granger Causality Test (GCT) is also applied to test the direction of causality between two indicators. According to the Random Effects Model (RAM) and Fixed Effects Model (FEM) with PD analysis in the study OECD-FRRI is found as one of the determinants of IMF-FDI and IMF-FDI is found as one of the determinants of OECD-FRRI in OECD member countries. For CSD analysis, there is no significant proof to say OECD-FRRI is one of the main determinants of IMF-FDI and IMF-FDI is one of the determinants of OECD-FRRI in OECD member countries. For CSD, OECD-FRRI does not cause IMF-FDI whereas IMF-FDI causes OECD-FRRI.

scholarly journals Analysis of the Relationship between Financial Development, Employment and Institutions on Economic Growth in WAEMU Countries

2020 ◽  
Vol 7 (12) ◽  
pp. 267-291
Author(s):  
Firmin Ayivodji ◽  
Rémy Hounsou ◽  
Emmanuel Tago
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Fixed Effects ◽  
Employment Level ◽  
Pooled Mean Group ◽  
Spatial Autoregressive ◽  
Spatial Autoregressive Models ◽  
The One ◽  
The Relationship

This study analyzes the relationship between financial development and economic growth on the one hand and the link between employment level and economic growth on the other hand in the context of financial liberalization. Also the question of the role of the institutional factors in the facilitation of the credit granting in the eight (08) countries of the WAEMU is approached. In doing so, strategies based on conventional fixed effects methods, with correction of Driscoll-Kraay (1998), Pooled Mean Group (PMG) of Pesaran et al. (1995, 1999) and spatial autoregressive models (SAC) are used to estimate the different equations over the period 1990-2015. The results suggest that financial development is positively associated with economic growth in WAEMU countries while an improvement in the level of employment stifles economic development. The results show that there is a positive and significant correlation between quality of democratic institutions and economic growth whatever the indicators of financial development considered except the money supply. The study recommends a strengthening of the financial development with a possible greater regularity.

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