scholarly journals Financial Liberalization or Financial Development? Tests Using Delphi-Based Index Ofliberalization

2009 ◽  
Author(s):  
Nicolaas Gronewold ◽  
Jiangang Peng ◽  
Guanzheng Li ◽  
Xiangmei Fan
Keyword(s):  
Financial Development ◽  
Delphi Method ◽  
Financial Liberalization ◽  
Financial Reform ◽  
Financial Assets ◽  
Policy Perspective ◽  
Financial Liberalisation ◽  
Components Analysis ◽  
Empirical Growth ◽  
Finance Growth Nexus

Most empirical analysis of the finance-growth nexus has used measures of financial development such as the ratio or monetary of financial assets to GDP to measure financial development. We argue that from a policy perspective measures of financial liberalisation or reform are of greater interest and, besides, are less likely to be beset by endogeneity problems which have dogged the empirical growth literature. We develop such a measure by combining the ‘Delphi’ method and principal components analysis to construct an index of financial liberalisation for China. Much of China’s financial development has been policy-driven and we could expect to find a distinct difference, at least in timing, between measures of financial reform and financial development. We compare our financial liberalisation index to a number of standard measures of financial development and find that there is pervasive evidence that financial liberalisation Granger-causes financial development but not vice versa.  

Globalization, Financial Development and Income Inequality

2015 ◽  
pp. 349-374
Author(s):  
Görkem Bahtiyar
Keyword(s):  
Financial Development ◽  
Capital Mobility ◽  
Direct Investment ◽  
Financial Liberalization ◽  
Division Of Labour ◽  
The Great Recession ◽  
Institutional Structures ◽  
The World ◽  
Changing Patterns ◽  
Portfolio Investments

Globalization, as a concept has three main aspects: economic, political and social. Economic globalization in general, refers to the liberalization of trade between countries and increasing mobility of factors. In the case of factor mobility, capital flows come to the fore. Increasing capital mobility in the form of foreign direct investment and more importantly, portfolio investments, apart from causing a new international division of labour among regions of the world, also have important effects on the financialization phenomenon, changes in income distribution and changing institutional structures. Developments in information-telecommunication technologies, changing patterns in intellectual sphere, as well as in political and economic institutions especially after the mid-1970s play a role in the rise of financial globalization. Financial liberalization has been celebrated since McKinnon (1973)-Shaw (1973), but the Great Recession sparked doubts on the ability of unchecked financial development on providing a solid and fair foundation of economic development.

scholarly journals Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania

2020 ◽  
Vol 13 (10) ◽  
pp. 239
Author(s):  
Mohamedou Bouasria ◽  
Arvind Ashta ◽  
Zaka Ratsimalahelo
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Access To Credit ◽  
Expert Interview ◽  
Public Sector Employees ◽  
Components Analysis ◽  
Country People

The objective of the study was to enhance our knowledge on institutional bottlenecks for financial development, financial inclusion, and microfinance, using Mauritania as a case study. We used a mixed-methods’ methodology that combines analysis of secondary data and an expert interview. First, a logit model with dummy independent variables was used to investigate the factors that impact the households’ access to credit, the main advantage of this model being to avoid confounding effects by analyzing the association of all variables together. Our study found that access to financial services is equal in Mauritania between men and women, but that access to credit is higher for public sector employees, educated people, and households with smaller families. Second, using principal components’ analysis, we found that the different regions of Mauritania can be divided based on unemployment, income, literacy, financial inclusion, and population density into two main dimensions, yielding four quadrants: Attractive, industrious, moderate, and resource cursed. We expected that sparsely populated countries would have less access to credit. Counterintuitively, we found that within a low-density country, people in the lowest-density regions have higher odds of getting credit. Third, based on an interview with an expert, we noted the key challenges that microfinance is facing in Mauritania and provided recommendations to overcome these. As in most case studies, external validity was limited.

scholarly journals Financial liberalization, financial development and economic growth in LDCs

2003 ◽  
Vol 15 (2) ◽  
pp. 189-209 ◽  
Author(s):  
Thomas Barnebeck Andersen ◽  
Finn Tarp
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Liberalization

scholarly journals Structural breaks in finance growth nexus: the study of Indonesia

2011 ◽  
Vol 1 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Bidisha Mukhopadhyay
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Financial Development ◽  
Structural Breaks ◽  
Structural Break ◽  
Break Point ◽  
Annual Data ◽  
Data Set ◽  
The Stability ◽  
Finance Growth Nexus

This paper empirically investigates the finance-growth nexus for an annual data set of Indonesia during the last two decades. The purpose is to examine the causal relationship between financial development and economic growth in Indonesia and also to test the structural breaks in the finance-growth relationship to investigate the change in policy regimes. To examine the causal relationship between financial development and economic growth, the newly proposed ARDL bound testing approach by Pesaran et al. (1996) has been applied .The estimated results support the view of Lucas (1988) that finance doesn’t matter for economic growth. Structural break is identified in the year 1997 in Indonesia with the estimated finance-growth relationship. The stability of the estimated relationship is examined with break-point Chow tests (F tests).

scholarly journals Promoting High-Quality Growth Through Financial Reform in the People’s Republic of China

2021 ◽  
Author(s):  
Yiping Huang ◽  
Xun Wang ◽  
Anqian Huang
Keyword(s):  
Financial Development ◽  
Economic Performance ◽  
Financial Reform ◽  
People’S Republic Of China ◽  
People's Republic Of China ◽  
High Quality ◽  
Republic Of China ◽  
Shed Light

This report assesses the effects of financial development on economic performance in the People’s Republic of China (PRC) and attempts to shed light on future reform directions.

scholarly journals Trivariate Modelling of the Nexus Between Financial Development, Globalization and Economic Growth: Insight from African Countries

2021 ◽  
Vol 2 (3) ◽  
pp. 129-142
Author(s):  
Azeez Olarewaju Ahmed
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Investment ◽  
Physical Capital ◽  
External Financing ◽  
African Countries ◽  
Pooled Mean Group ◽  
Development Policies ◽  
Alternative Sources ◽  
Finance Growth Nexus

Financial development has been identified as main drivers of economic growth. However, empirical probe of this nexus remains inconclusiveness due use of an inappropriate proxy by previous studies, and the inability of previous studies to consider globalization in this nexus. To this end, we probe the finance-growth nexus in the presence of globalization by applying the Pooled Mean Group (PMG) estimator to a sample of 21 countries spanning 1990–2017. The empirical results affirm the supply-leading hypothesis which indicates that financial development spur economic growth. In addition, our estimate provides evidence of a positive linear relationship between globalization and economic growth. Further, results indicate that physical capital investment plays an important role in accelerating economic performance of African economies. Based on these findings, it is important for African countries to promote globalization-financial development policies in order to have access to alternative sources of external financing and attract foreign investment that can spur growth of African countries.

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