التطور المالي وتأثيره في النمو الاقتصادي في العراق

2020 ◽  
Vol 2020 (66) ◽  
pp. 27-45
Author(s):  
أ.م.د. ابتسام علي حسين ◽  
أ.م د. بدر شحدة حمدان
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Private Sector ◽  
Money Supply ◽  
Financial Development ◽  
Capital Accumulation ◽  
Broad Sense ◽  
Financial Variables ◽  
Integration Test ◽  
The Impact

The aim of the research is to measure the impact of financial development on economic growth in Iraq using the annual time series for the period 2004-2018 for a number of monetary and financial variables (money supply in the broad sense / GDP, capital accumulation rate / GDP and the ratio of credit granted to the private sector / GDP) expressing the development in the financial sector in Iraq, and this period was chosen in line with the relatively high rates of economic growth witnessed in Iraq, and the study used descriptive and quantitative approaches in order to build an appropriate standard model to measure the impact of financial development on economic growth in Iraq, and the method of time series analysis was used. The results showed that the economic variables contain the unit root, and the variables become stable after the first differences, and this was followed by subjecting the variables to the joint integration test by the Johansson method, which proved the existence of four vectors for the joint integration between the research variables, and the results of the joint integration showed that there is a long-term relationship between the variables The subject of the research, as the causation test of Granger concluded that there is a unilateral trend of causation from the financial variables to the variable of economic growth, and the research found the existence of an effect of each of (broad-sense money supply / GDP, and the ratio of credit granted to the private sector / GDP) on economic growth in Iraq, while the rate of capital accumulation / GDP was not statistically significant. In light of the previous results, the research recommends the following: The necessity of directing domestic credit to productive investments by paying attention to the rate of capital accumulation that is directed to local investments and attracting foreign investments by providing a safe and stable legislative environment that helps financial liberalization for the purpose of increasing economic growth rates in Iraq..

scholarly journals The Relationship between Financial Development and Economic Growth: The Case of Turkey

2016 ◽  
Author(s):  
Müge Manga ◽  
Mehmet Akif Destek ◽  
Muammer Tekeoğlu ◽  
Erkut Düzakın
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Trade Liberalization ◽  
Money Supply ◽  
Financial Development ◽  
Integration Test ◽  
Domestic Credit ◽  
The Impact ◽  
Bound Test ◽  
The Relationship

The relationship between financial development and economic growth and the direction of causality between them have been received a lot of attention recently by many scholars. It is also important to analyze this relationship and the direction of causality due to implications of policies. In this study the relationship between financial development, trade liberalization and economic growth for Turkey are examined using three different models. Model 1, 2 and 3 investigate the effect of domestic loans to the private sector and trade liberalization on GDP, the impact of the domestic credit provided by banks to the private sector and trade liberalization on GDP and the effect of M2 money supply and M2 trade liberalization on GDP, respectively. Data extracted from World Development Indicators. Autoregressive-Distributed Lag Bound Test (ARDL) is used as a co-integration test to determine the long run relationship between variables. In addition, Toda and Yamamoto (1995) is utilized to test the direction of causality between financial development and economic growth according to the three financial indicators such as domestic loans to the private sector, the domestic credit provided by banks to the private sector and M2 money supply. According to the results there is a unidirectional relationship from economic growth to domestic loans to the private sector and the domestic credit provided by banks to the private sector. Additionally, the results indicate that a bidirectional relationship exist between M2 money supply and economic growth.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

scholarly journals The Impact of Financial Deepening on Economic Growth in Nigeria (1981-2018)

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Sector ◽  
Financial Deepening ◽  
Growth Data ◽  
Main Research ◽  
The Impact

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

scholarly journals Exchange Rate Misalignment and Economic Growth in Pakistan: The Role of Financial Development

2020 ◽  
Vol 59 (1) ◽  
pp. 81-99
Author(s):  
Zainab Jehan ◽  
Iffat Irshad
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Financial Development ◽  
Adverse Impact ◽  
Series Data ◽  
Development Economic ◽  
Exchange Rate Misalignment ◽  
The Impact

This study endeavours to examine empirically how real exchange rate (RER) misalignment affects economic growth in Pakistan. In this regard, we have not only estimated the direct impact but also the indirect impact of misalignment on economic growth by using the financial development channel. We have used time series data ranging from 1980 to 2016 to carry out the empirical analysis. After testing the time series properties of the selected variables, we computed long run equilibrium RER later used to calculate RER misalignment. Finally, we estimated the impact of misalignment on per capita economic growth, both direct and indirect. Our results reveal an adverse impact of RER misalignment on economic growth. However, we report that financial development helps in minimising the adverse impact of RER misalignment, though not fully eliminating it. Based on the empirical findings, the study suggests that exchange rate policies need to be managed more cautiously. Moreover, the financial sector development needs to be strengthened which may help in fully alleviating the adverse impact of RER misalignment on economic growth. JEL Classification: F31, GOO, O47 Keywords: Real Exchange Rate Misalignment, Financial Development, Economic Growth, FMOLS

scholarly journals PRIVATE SECTOR INVESTMENT AND ECONOMIC GROWTH IN PALESTINE

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Osaid Nasser Abdaljawwad ◽  
Tamat Sarmidi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Private Sector ◽  
Unit Root ◽  
Time Series Data ◽  
Private Investment ◽  
Series Data ◽  
Private Sector Investment ◽  
Long Run ◽  
The Impact

This study examines the impact of private sector investment on economic growth in Palestine using quarterly time series data from 1990-2015. Multiple regression and co-integration methods are employed to analyse the data. The objectives of this study are to analyse the trends of private investment and economic growth in Palestine from 1990­-2015 and to examine the impact of private sector investment on economic. Being a time series data, to avoid spurious regression results, the first step is to test for the stationarity of the data by using Augmented Dickey-Fuller unit root test. Then ordinary least square (OLS) regression technique is used to estimate of each independent variable effect on the dependent variable. Test the stationary of the error term is done to test the long run co-integration among variables. The result of stationarity and normality test will reveal that the model is fairly well specified and could be used for policy analysis or not. The co-integration test result will indicate that private sector investment and economic growth have a long run significant effect on one another. The unit root tests, which conducted, confirm that variables are stationary in first difference and the co-integration tests also confirm the existence of long term relationship between the variables. The findings of the study concluded that there exist a short-run and long run relationship between private sector investment and economic growth in Palestine. This study recommends the Palestinian government to promote and encourage both domestic and foreign direct investment. The investment policy should be more transparent, attractive and competitive

scholarly journals The Impact of Financial Deepening on the Economy of Nigeria (1981-2018)

2020 ◽  
pp. 12-21
Author(s):  
Udeme Okon Efanga ◽  
Chinelo Okanya Ogochukwu ◽  
Georgina Obinne Ugwuanyi
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Positive Impact ◽  
Domestic Product ◽  
Financial Deepening ◽  
International Capital ◽  
Integration Test ◽  
The Many ◽  
The Impact

This study was carried out to investigate the impact of financial deepening on the Nigerian economy between 1981 and 2018. Data employed for this study was elicited from Central Bank of Nigeria Statistical Bulletin of 2018. This study employed real gross domestic product as proxy for economic growth in Nigeria (regress and), while ratio of money supply to gross domestic product, ratio of private sector credit to gross domestic product and ratio of market capitalization to gross domestic product were adopted as regressors. The co-integration test and Fully Modified Least Squares (FMOLS) Model were utilized to analyze data. Inferential results generated there from indicated that financial deepening had positive impact on the Nigerian economy within the period under review. To boost economic growth, we recommend at this time that monetary authorities implement monetary policies to increase money. In the same vein, Nigerian commercial banks should be encouraged to improve upon credit facilities made available to the private sector. Recognizing the positive impact of international capital, this study also recommends that Nigerian policy makers ease some of the many restrictions that currently limit entry of international capital. This singular act would most definitely lead to more companies being listed on the exchange. The result would be the attainment of even more depth to Nigeria’s economy.

scholarly journals Financial deepening and economic growth in nigeria (1981-2012): A managerial economic perspective

2014 ◽  
Vol 4 (4) ◽  
pp. 120-131 ◽  
Author(s):  
Anthony Igwe ◽  
Chukwudi Emmanuel Edeh ◽  
Wilfred Isioma Ukpere
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Money Supply ◽  
Study Data ◽  
Series Data ◽  
Equilibrium Path ◽  
Financial Deepening ◽  
Long Run ◽  
Short Run ◽  
The Impact

The objective of this study is to determine the impact of financial deepening on economic growth in Nigeria. The supply leading hypothesis was adopted as the theoretical framework of the study. Data for analysis was for the period 1981-2012 obtained from the Central Bank of Nigeria Statistical Bulletin. The explanatory variables were logged values of broad money supply/GDP and Credit to the private sector/GDP. The times series data were tested for stationarity using the ADF unit root tests of stationarity and were found to be stationary at first difference. The Engle-Granger Cointegration technique and Error correction model were used for the test of long run relationship. Findings reveal that money supply (MS) is positive and weakly significant in determining economic growth. However, credit to the private sector was negative and not significant in the short run. The speed of adjustment of the ECM is 25.51%. This implies that if there are short run fluctuations, GDP will converge to its long run equilibrium path at a speed of about 25.51% in each period .The conclusion is that financial deepening does not have the desired impact on economic growth in Nigeria. Hence, there is a need for increase and improvement in access to private credit to enhance economic growth and investment.

scholarly journals The Relationship of Economic Growth and Foreign Direct Investment on Financial Development: Empirical Evidence from Palestine

2021 ◽  
pp. 14-35
Author(s):  
Nemer Badwan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Financial Development ◽  
Capital Accumulation ◽  
Direct Investment ◽  
Output Growth ◽  
The Impact ◽  
The Relationship

Purpose: The purpose of this research is to investigate the impact and current link between economic growth and foreign direct investment (FDI) on financial development in Palestine, as well as the role of financial development in influencing this relationship. Design/Methodology/Approach: The logical reasoning approach associated with quantitative research was applied in this study, which was backed up by experience and positivism as philosophical viewpoints. Data on economic growth indicators, foreign direct investment (FDI), financial development, and other control variables were also used, spanning the years (1998 to 2019). To determine whether there is an effect and a relationship between economic growth, foreign direct investment (FDI), and financial development in Palestine, Johansen's co-integration analysis method will be used. Results: Johansen's co-integration discovered that economic growth, foreign direct investment (FDI), and financial development have a favourable influence and a Long-Term association. Furthermore, there was a statistically significant relationship between stock market financial development indices and foreign direct investment (FDI). Practical Implications: This study adds to the literature by evaluating whether foreign direct investment (FDI) drives growth through financial development networks and other factors that can drive growth in addition to foreign direct investment (FDI). A well-developed financial market, according to research, will boost the impact of indirect foreign direct investment (FDI) on economic growth. By offering enough liquidity services that increase links between local and global investors, a well-developed stock market will promote capital accumulation activities and output growth. Originality/Value: This study is unique in that it examines the impact and relationship between economic growth and foreign direct investment (FDI) in Palestine on financial development, which must be considered in all developing countries' Long-Term development plans. Simultaneously, this study is a step ahead in examining the relationship between economic growth and foreign direct investment (FDI) in Palestine, as well as their primary function in financial development.

scholarly journals The Growth of Private Sector and Financial Development in Saudi Arabia

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 39 ◽  
Author(s):  
Mohammad Imdadul Haque
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Private Sector ◽  
Financial Development ◽  
Significant Relationship ◽  
Trade Openness ◽  
Current Trend ◽  
Government Expenditure ◽  
Financial Variables ◽  
Oil Sector

In an attempt to diversify itself away from the dominance of oil on its economy, Saudi Arabia needs to emphasize on the growth of its private sector. Currently, the private sector’s contribution to economic growth is meager as the oil sector dominates the economy. This study attempts to assess the role of financial development towards the growth of the private sector. Assessing this relationship is important, as it is quite probable that the dominant oil sector attracts the financial resources, affecting the private sector adversely. Johansen’s method of cointegration is applied on the data for the period 1985–2018. The private sector’s gross domestic product has a negative relation with the supply of money, positive relation with bank credit to private sector, and no significant relationship with share market capitalization, as shown by the results of the study. In addition, the private sector’s growth has a positive and significant relationship with government expenditure, investment, and trade openness. Hence, the study recommends further strengthening of financial sector services. Besides the current trend on government expenditure, investment and trade openness should continue to enable the private sector to contribute significantly to the economic growth of the country. A previous study on the private sector’s growth and financial variables is exclusively missing, and makes this study unique.

scholarly journals Causality between Financial Development and Economic Growth: Evidence from10 Sub-Sahara African Countries (2002-2013)

2016 ◽  
Vol 2 (3) ◽  
pp. 37
Author(s):  
Gylych JELILOV ◽  
Chidiogo Mary ILE ◽  
Abdurahman ISIK ◽  
Kenneth DIYOKE
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Fixed Effects ◽  
Fixed Effect Model ◽  
African Countries ◽  
Long Run ◽  
Integration Test ◽  
Fixed Model ◽  
The Individual ◽  
The Impact

<p>This study empirically examines the impact and direction of causality between financial development and economic growth in 10sub-Saharan African countries for the period 2002 to 2013. The empirical investigation was carried out using the static panel data where three possible procedures were considered; the pooled (OLS); fixed effects (FE) and random effects (RE) methods, each with its underlying assumptions necessary to obtain unbiased and efficient estimates. Our results showed that the fixed model is preferred. This presupposes that the individual specific effects in each country’s development finance can no longer be ignored, in examining their impacts on the country’s economic growth. Also, the results of the co integration test, provides evidence of the existence of a long-run relationship between financial development and economic growth in all the countries studied. The fixed effect model results also indicate that financial development plays a causal role on economic growth, again in all the countries studied.  These findings imply that Sub-Sahara African countries can accelerate their economic growth by improving their financial systems.</p>

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