scholarly journals Financial Development and Sustainable Competitiveness in Arctic Region: A Dynamic Panel Data Analysis

2022 ◽  
Vol 17 (1) ◽  
pp. 267-278
Author(s):  
Farzan Yahya ◽  
◽  
Ghulam Abbas ◽  
Muhammad Hussain ◽  
Muhammad Waqas ◽  
...  
Keyword(s):  
Financial Development ◽  
Social Cohesion ◽  
Natural Capital ◽  
Panel Data Analysis ◽  
Composite Index ◽  
Arctic Region ◽  
Dynamic Panel Data ◽  
The Arctic ◽  
Endogeneity Bias ◽  
Negative Effect

The present study investigates the effect of financial development on sustainable competitiveness and its components (natural capital, resource intensity, and social cohesion) in the Arctic region. We employ bank-based, stock-market based, and composite index to measure financial development. To deal with endogeneity bias, system GMM is utilized. The results show a positive and significant effect of financial development on sustainable competitiveness. The estimates also assert that financial development encourages resource efficiency and social cohesion in the region. In contrast, we find the negative effect of financial development on natural capital. This suggests that overexploitation of natural resources may provide short-term benefits to the local and regional communities but it may threaten the long-term sustainability of the Arctic. Thus, the financial sector should be guided to support financing and investing activities in alternative eco-friendly technologies and ventures for reducing excessive natural resource utilization.

scholarly journals EXTERNAL DEBT, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

2020 ◽  
Vol 23 (2) ◽  
pp. 221-238
Author(s):  
Siti Nurazira Mohd Daud
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
External Debt ◽  
Institutional Quality ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Debt Overhang ◽  
Negative Effect ◽  
Dynamic Panel Data Analysis

This paper addresses the gap in the literature by investigating the role of the institutional quality in the nexus of external debt and economic growth. By employing a dynamic panel data analysis, we found that the institutional quality plays some role in complementing the effect of external debt on a country’s economic growth. We also found that the negative effect of external debt and a country’s economic growth monotonically increases with the level of institutional indicator, which implies the possibility of debt overhang may still happen in economies endowed with good institutions, but for higher values of debt.

scholarly journals FINANCE AND INEQUALITY: HOW DOES GLOBALIZATION CHANGE THEIR RELATIONSHIP?

2013 ◽  
Vol 18 (5) ◽  
pp. 1091-1128 ◽  
Author(s):  
Takuma Kunieda ◽  
Keisuke Okada ◽  
Akihisa Shibata
Keyword(s):  
Financial Development ◽  
Financial Market ◽  
Financial Integration ◽  
Panel Data Analysis ◽  
World Market ◽  
Dynamic Panel Data ◽  
International Financial Integration ◽  
The World ◽  
Country Analysis ◽  
Using Data

This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both cross-country analysis and dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is strongly closed to the world market, financial development narrows inequality within that country, whereas if the financial market of a country is strongly open to the world market, financial development widens inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.

scholarly journals Governance and Financial Development: Evidence from the Middle East and North Africa Region

2016 ◽  
Vol 1 (2) ◽  
pp. 115-127 ◽  
Author(s):  
Badry Hechmy
Keyword(s):  
Financial Development ◽  
Good Governance ◽  
Institutional Development ◽  
Financial Sector ◽  
Dynamic Panel Data ◽  
Formal Sector ◽  
Mena Countries ◽  
Negative Effect ◽  
Econometric Approach ◽  
The International Monetary Fund

Since the 1990s, the promotion of good governance has been a priority for major international organizations such as the International Monetary Fund and the World Bank.  This article aims to estimate the effect of institutional development on financial development in MENA countries during the period 1996 to 2013.  Drawing on Demetriades and Luintel (1996) and Ito (2006), the econometric approach used is based on the GMM, the autocorrelation test for errors of Arellano and Bond (1991), and the over-identification test of Sargan for dynamic panel data. The results derived from this study show a considerable delay in financial development in MENA countries compared to several other emerging countries in Asia and Latin America. Furthermore, it shows a negative effect of institutional development on financial development.  This unexpected relationship between these two variables has two explanations. First, the delusory level of institutional development of some countries in the region actually remains under the threshold beyond which it begins to positively affect the financial sector. Second, the political unrest experienced by the region during the study period has encouraged the informal financial sector to the detriment of the formal sector.

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