The impact of a country’s level of development on the nexus between bank lending structure and economic growth

2021 ◽  
pp. 51-70
Author(s):  
I. N. Gurov ◽  
E. Y. Kulikova
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Lending ◽  
Low Income Countries ◽  
Gdp Per Capita ◽  
Per Capita ◽  
The Impact

The purpose of this paper is to determine how the impact of the bank lending structure on economic growth differs depending on the level of a country’s development. The article provides suggestions on how much one can rely on the leading growth of corporate and consumer bank lending in order to promote economic growth. The study is based on the panel data for 211 countries for the period 1990—2019 using methods of qualitative and quantitative analysis. The authors have identified three groups of the countries where the impact of the bank lending structure on economic growth is different. In the least developed and low-income countries, the leading growth of both consumer and corporate lending has a positive impact on economic growth. As GDP per capita reaches 4,700—7,000 constant 2010 U.S. dollars, the outstripping growth of consumer lending begins to negatively affect economic growth, while corporate lending continues to have a positive impact. As GDP per capita continues to increase, corporate lending also begins to negatively affect economic growth. The GDP per capita threshold level, after which the negative impact of corporate lending begins, ranges from 6,000 to 42,000 constant 2010 U.S. dollars, some estimates allow us to specify these limits from 13,000 to 22,000 constant 2010 U.S. dollars. Such broad boundaries are determined by the fact that the role of the banking sector in investments financing may differ because of the financial sector model and the national economy structure. However, our results show that in the most developed and high-income countries, faster growth in corporate lending will not contribute to economic growth. The study also finds that the share of mortgage loans in GDP has a positive but insignificant effect on economic growth in all groups of the countries.

scholarly journals The Determinants of Non-Performing Loans in the Polish Banking Sector – the Household Loans Portfolio

2022 ◽  
Vol 19 ◽  
pp. 247-258
Author(s):  
Sławomir I. Bukowski ◽  
Aneta M. Kosztowniak
Keyword(s):  
Response Function ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Gdp Per Capita ◽  
Forecast Period ◽  
Lending Rates ◽  
Per Capita ◽  
Main Determinants

The study aims to identify changes in non-performing household loans (NPLs) and their main determinants in the Polish banking sector for the period 2009-2021. Specifically, we look at the main determinants of creditworthiness of households which determine the possibility of repayment of principal installments and interest within the prescribed period. The results of the VECM model confirm the considerable significance of GDP per capita, gross salaries and lending rates to NPL loans of households. The results of the response function show a positive impact of GDP per capita and lending rates on NPLs and a negative impact of real salaries on NPLs. The decomposition of variance in the forecast period confirms an increased level of explanation of NPL by GDP per capita, gross salaries, and the lending rates.

scholarly journals Does economic growth reduce childhood stunting? A multicountry analysis of 89 Demographic and Health Surveys in sub-Saharan Africa

2020 ◽  
Vol 5 (1) ◽  
pp. e002042 ◽  
Author(s):  
Sanni Yaya ◽  
Olalekan A Uthman ◽  
Michael Kunnuji ◽  
Kannan Navaneetham ◽  
Joshua O Akinyemi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Random Effect ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Gdp Per Capita ◽  
Demographic And Health Surveys ◽  
Per Capita ◽  
Sub Saharan ◽  
Childhood Stunting

BackgroundThere is mixed evidence and lack of consensus on the impact of economic development on stunting, and likewise there is a dearth of empirical studies on this relationship in the case of sub-Saharan Africa. Thus, this paper examines whether economic growth is associated with childhood stunting in low-income and middle-income sub-Saharan African countries.MethodsWe analysed data from 89 Demographic and Health Surveys conducted between 1987 and 2016 available as of October 2018 using multivariable multilevel logistic regression models to show the association between gross domestic product (GDP) per capita and stunting. We adjusted the models for child’s age, survey year, child’s sex, birth order and country random effect, and presented adjusted and unadjusted ORs.ResultsWe included data from 490 526 children. We found that the prevalence of stunting decreased with increasing GDP per capita (correlation coefficient=−0.606, p<0.0001). In the unadjusted model for full sample, for every US$1000 increase in GDP per capita, the odds of stunting decreased by 23% (OR=0.77, 95% CI 0.76 to 0.78). The magnitude of the association between GDP per capita and stunting was stronger among children in the richest quintile. After adjustment was made, the association was not significant among children from the poorest quintile. However, the magnitude of the association was more pronounced among children from low-income countries, such that, in the model adjusted for child’s age, survey year, child’s sex, birth order and country random effect, the association between GDP per capita and stunting remained statistically significant; for every US$1000 increase in GDP per capita, the odds of stunting decreased by 12% (OR=0.88, 95% CI 0.87 to 0.90).ConclusionThere was no significant association between economic growth and child nutritional status. The prevalence of stunting decreased with increasing GDP per capita. This was more pronounced among children from the richest quintile. The magnitude of the association was higher among children from low-income countries, suggesting that households in the poorest quintile were typically the least likely to benefit from economic gains. The findings could serve as a building block needed to modify current policy as per child nutrition-related programmes in Africa.

scholarly journals GLOBALIZATION AND ITS IMPACT ON ECONOMIC GROWTH: EVIDENCE FROM ASEAN COUNTRIES

TRIKONOMIKA ◽  
2020 ◽  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Positive Impact ◽  
Economic Globalization ◽  
Gdp Per Capita ◽  
Domestic Product ◽  
Brunei Darussalam ◽  
Per Capita ◽  
Asean Countries ◽  
The Impact

This study investigates the impact of globalization toward economic growth in ASEAN countries during 2012 to 2017. The research method used judgmental sampling with samples of 11 countries. They were Brunei Darussalam, Cambodia, East Timor, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The analysis used path analysis to examine the impact between the variables of globalization and economic growth. Globalization was determined by globalization index, economic globalization, social globalization, and politic globalization. Real Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita are used as a proxy for economic growth. The finding results are that globalization index, economic globalization, social globalization, and politic globalization have a significant positive association with Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita. Overall globalization evidence the positive impact on economic growth in ASEAN Countries.

scholarly journals Foreign Investment, Government Expenditure, and Economic Growth in Malaysia

2010 ◽  
Author(s):  
Fatimah Said ◽  
Zarinah Yusof ◽  
Saad Mohd Said ◽  
Ahmad Farid OSMAN
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Driving Forces ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Real Income ◽  
Ordinary Least Squares ◽  
Gdp Per Capita ◽  
Per Capita

This study uses the ordinary least squares technique to examine the effect of foreign investment and government expenditure on the growth in GDP per capita in Malaysia over the period 1978-2005. The regression results showed that the growth of export and ratio of government expenditure to GDP are the driving forces in enhancing the economic growth in Malaysia. Foreign investment and previous year real income per capita growth depict positive impact, whereas population growth exerts a negative impact on economic growth.  

scholarly journals Corruption and economic growth in Croatia

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
Damir Piplica ◽  
Petar Čovo
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Measuring Method ◽  
Gdp Per Capita ◽  
Social Phenomena ◽  
Macroeconomic Indicators ◽  
Per Capita ◽  
The One ◽  
High Level ◽  
The Impact

Today, more and more authors are involved in researching the economic phenomenon of corruption and its impact on many macroeconomic indicators. Nevertheless, transitional surroundings have offered a unique opportunity in history to explore the relationship between corruption and economic growth in entirely different environment from the one in developed western economies. Researching of, at first sight, two unrelated social phenomena gave additional light on the causes of economic growth in Croatia. The researching paper also gives Croatian position among ten transition EU member countries. The corruption perception index was used as the best measuring method of corruption in Croatia and other countries while economic growth was measured by GDP per capita instead of growth rates. We explained reasons why we did so. The time period covered by the research was from 1999 to 2009 for Croatia and from 1995 to 2009 for ten transition EU member countries. Total of 137 cases were evaluated. The researching paper demonstrates the negative impact of corruption on economic growth where the strength of its influence is relatively obvious. It is also evident that the impact of corruption on economic growth is substantially a direct one and that it takes place without a significant time delay. Results for the period of research related to Croatia, more closely fit the observed data of other transition countries. Corruption could be an additional explanation (certainly not the only one) for low or high level of GDP per capita in Croatia. Misunderstanding of all the factors that encourage the economic growth may lead to macroeconomic structural misbalances in Croatian economy. 

scholarly journals Impact of Socio-Economic Variables on Life Expectancy: An Empirical Study for 138 Countries

2021 ◽  
Vol 11 (1) ◽  
pp. 330
Author(s):  
Mahmoud MOURAD
Keyword(s):  
Life Expectancy ◽  
Negative Impact ◽  
Positive Impact ◽  
Multiple Linear Regression Model ◽  
Generalized Least Squares ◽  
Gdp Per Capita ◽  
Cross Sectional ◽  
Life Expectancy At Birth ◽  
Per Capita ◽  
The Impact

This study has examined the impact of mortality rate of children under five years of age (MORRATE), physicians (PMP), health expenditure per person (HEPP), access to electricity (AELEC) and GDP per capita on life expectancy at birth (LEB) for one hundred and thirty-eight countries taken as cross-sectional data. The MORRATE ranged from 2.4 to 160.2 (per 1,000 people), thus reflecting an inequality in LEB which fluctuates between 44.8 and 82.8. The PMP varies from 0.01 to 7.74, the HEPP between 16.92 and 8264 USD, the AELEC between 4.1% to 100% and finally the GDP per capita oscillates between 326.6 and 102,863 USD. The multiple linear regression model is estimated using the OLS method and several tests for heteroscedasticity are performed. The null hypothesis of homoscedasticity is rejected and therefore the Weighted Generalized Least Squares) WGLS) method is used to produce unbiased, efficient and consistent estimators. The results showed a negative impact of MORRATE on LEB. A single increase in the number of deceased children leads to a decrease of about 2.12 months in LEB. The HEPP has a positive impact on LEB, so if HEPP rises to 100 USD then the LEB rises by 33 days approximately. When introducing four binary variables characterizing the five continents, and taking Oceania as a reference, the life expectancy in an African country will be about 2.4 years less than the LEB reference. For the other continents, it seems that the values of LEB are very close.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

Measuring the Impact of Tourism on Economic Growth

2007 ◽  
Vol 13 (3) ◽  
pp. 379-388 ◽  
Author(s):  
Stanislav Ivanov ◽  
Craig Webster
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Gdp Per Capita ◽  
Equilibrium Models ◽  
Computable General Equilibrium Models ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

This paper presents a methodology for measuring the contribution of tourism to an economy's growth, which is tested with data for Cyprus, Greece and Spain. The authors use the growth of real GDP per capita as a measure of economic growth and disaggregate it into economic growth generated by tourism and economic growth generated by other industries. The methodology is compared with other existing methodologies; namely, Tourism Satellite Account, Computable General Equilibrium models and econometric modelling of economic growth.

scholarly journals THE CONTRIBUTION OF MIGRATION TO ECONOMIC GROWTH: THE EXAMPLE OF THE CITY OF ZAGREB

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Vinko Miličević ◽  
Danijel Knežević ◽  
Zoran Bubaš
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Activity ◽  
Economic Benefits ◽  
Gdp Per Capita ◽  
The European Union ◽  
Per Capita ◽  
The Republic ◽  
The Impact ◽  
The City

The problems in this paper belong to the field of migration and economy. The connection between migration and the economy has been proven on a global level, and as far as the Republic of Croatia is concerned, it is especially important to observe it through the City of Zagreb, which is the most important migration and economic center in the Republic of Croatia. Also, the accession of the Republic of Croatia to the European Union emphasized the observation and research of this connection because it created the preconditions for freer movement and employment of the population of the Republic of Croatia and the City of Zagreb within the European Union. The aim of this paper is to determine the contribution of migration to the economic growth of the City of Zagreb. The hypothesis presented in the paper is that there is a significant contribution of migration to the economic growth of the City of Zagreb. The disposition of the paper consists of six parts. The introduction explains the relevance of the topic, states the aim of the paper and hypotheses, explains the empirical part, the contribution of the paper and the disposition. The second part of the paper refers to the theoretical framework of the impact of migration on economic growth. The third part of the paper presents the migration processes of the City of Zagreb in the period from 2011 to 2018. The fourth part deals with economic activity in the City of Zagreb in the period from 2011 to 2017. The observed indicators of economic activity in the City of Zagreb are GDP and GDP per capita, and the graph in this part of the paper shows that GDP and GDP per capita in the observed period are higher at the end of the period than at the beginning. The fifth part of the paper refers to the empirical research of the contribution of migration to the economic growth of the City of Zagreb. The empirical part of the paper is based on correlations and regression analyses. This paper proves the hypothesis because the results indicate a significant impact of the variables of total and external migration on the GDP of the City of Zagreb and GDP per capita of the City of Zagreb. Decision-makers in the City of Zagreb can use the results of the research as a basis for maximizing the economic benefits they can get from migration. The conclusion provides an overview of the aim of the work, the results of the research, the limitations, the implications and the recommendations for future research.

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