The Relationship Between Economic Growth and Banking Sector Development in Ukraine

2022 ◽  
Vol 19 ◽  
pp. 222-230
Author(s):  
Svitlana Kachula ◽  
Maksym Zhytar ◽  
Larysa Sidelnykova ◽  
Oksana Perchuk ◽  
Olena Novosolova
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Positive Impact ◽  
Limiting Factors ◽  
Causality Test ◽  
Bank Deposits ◽  
Real Gdp ◽  
Banking Sector Development ◽  
Spatial Dimensions ◽  
The Relationship

The paper examines the relationship between economic growth and banking sector indicators in Ukraine. The constructed empirical model revealed a positive impact of bank deposits on real GDP growth. The causal relationships between economic growth in Ukraine and the performance of the banking sector are analyzed using the Granger Causality Test. It is established that banking deposits Granger-cause GDP, while banking credits do not, but GDP has an effect on banking credits. It is noted that the banking sector of Ukraine does not play a significant role in the redistribution of capital in the intersectoral and spatial dimensions. It is defined limiting factors of lending to the private sector and ways to increase the deposit base of banks.

scholarly journals DOES BANKING SECTOR DEVELOPMENT HAVE ANY ASSOCIATION WITH ECONOMIC GROWTH AND INTEREST RATES IN PAKISTAN?

2019 ◽  
Vol IV (I) ◽  
pp. 100-107
Author(s):  
Muhammad Yusuf Amin ◽  
Syed Imran Khan ◽  
Noor Hassan
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Granger Causality ◽  
Banking Sector ◽  
Real Exchange Rates ◽  
Discount Rates ◽  
Causality Test ◽  
Bank Deposits ◽  
Long Run ◽  
Banking Sector Development

The study aims to examine the association between banking sector development, real exchange rates, inflation rates, federal discount rates, economic growth and bank deposits in Pakistan. The study employs Johansen co-integration method and Granger causality test. The empirical results confirm for the existence of a long run relationship between banking sector development and inflation, economic growth and federal discount rates. The results of Granger causality indicate that US interest rates affect the development of the Pakistani banking sector. This confirms the existence of spillover impact.

scholarly journals The relationship between banks' credit activity and economic growth: An empirical research for the Republic of Serbia

Industrija ◽  
2020 ◽  
Vol 48 (2) ◽  
pp. 37-53
Author(s):  
Milka Grbić ◽  
Stevan Luković
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Research Study ◽  
Causality Test ◽  
Real Gdp ◽  
Gdp Growth Rate ◽  
Interactive Relationship ◽  
The Republic ◽  
The Relationship ◽  
Different Order

The subject matter of the research study conducted in this paper is the interactive relationship between banks' credit activity and economic growth. In connection with that, the paper is aimed at examining the existence and direction of the cause and effect relationship between the credit activity of the banking sector and the overall economic activity in the Republic of Serbia. The quarterly data related to the period from 2003 to 2019 were collected for the purposes of the research. The share of the loans granted to enterprises in the GDP and the share of the loans granted to households in the GDP are used as the indicators of the credit activity in the study, whereas the real GDP growth rate is determined as the indicator of economic growth. Given the fact that the observed time series are of the different order of integration, the analysis is conducted within the VAR model by applying the Toda-Yamamoto procedure of the Granger causality test. The results of the research show a significant unidirectional causal relationship according to Granger, which starts from the direction of banks' credit activity towards economic growth. The results of the conducted research study can be useful to the makers of the economic policy and the creators of a strategy for the development of the national economy.

scholarly journals Exploring the causality between economic growth, financial development and inflation in sixteen high-income countries

2021 ◽  
Vol 22 (45) ◽  
Author(s):  
José Alberto Fuinhas ◽  
Matheus Koengkan ◽  
Matheus Belucio
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Banking Sector ◽  
High Income ◽  
Market Development ◽  
Impulse Response Functions ◽  
Vector Autoregressive ◽  
Stock Market Development ◽  
Banking Sector Development ◽  
The Relationship

This paper examined the relationship between economic growth, inflation, stock market development, and banking sector development for a panel of sixteen high-income countries for the period from 2001 to 2016, by using the mechanism impulse response functions and Granger causality tests derived from a panel vector autoregressive model. The evidence of bidirectional causality between all variables in the model was found. Overall, feedback and supply-leading theories have been confirmed in the literature. A plus sign in the relationship between the development of the banking sector and the stock market with economic growth was found. Therefore, stock market development and banking sector development stimulate the economy.

scholarly journals The Relationship between Innovation, Financial Development, and Economic Growth : Testing in ASEAN Countries for the Period 1986-2015

2019 ◽  
Vol 2 (1) ◽  
pp. 23-48
Author(s):  
Diah Saputri ◽  
Harmadi Harmadi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Banking Sector ◽  
Secondary Data ◽  
Principal Component ◽  
Causality Test ◽  
Asean Member ◽  
The World ◽  
The Difference ◽  
The Relationship

This study aims to determine the relationship between innovation, financial development, and economic growth. Innovation is measured by patents, and economic growth is measured by the percentage of GDP per capita, while financial development is measured by seven indicators, namely banking sector development. Index formation is done through the Principal Component Analysis (PCA), with the note of the variable were defined earlier. This study uses data from ten ASEAN member countries with observation periods from 1986-2015. Research data is secondary data derived from the World Development Indicator and Global Financial Development at the World Bank. The analytical method used in this study is granger causality test, VECM, and IRF and FEVD analysis. The results showed that there were several differences in results in the direction of the three relationships. This difference is due to the difference in proxy that used in the study. There are three cases in this study. Broadly speaking, the relationship between financial development and economic growth is a unidirectional causality from financial development to economic growth. On the other hand, testing on economic growth with innovation shows a bidirectional causality. On the relationship between financial development and innovation, there are unidirectional causality from innovation to financial development. Nevertheless, the relationship between the three variables shows a long-term relationship.

scholarly journals An Analysis of Exports and Imports and Their Effect on the Economic Growth in Iraq

2019 ◽  
Vol 3 (2) ◽  
pp. 68-76
Author(s):  
Shene Abdulla ◽  
Hazhar Ali
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Causality Test ◽  
Long Run ◽  
Private And Public ◽  
Annual Time Series ◽  
The Relationship ◽  
Annual Time ◽  
Different Levels

The Iraqi economy faces more challenges than opportunities, especially in recent years due to the civil war, while basic reforms for merging the private and public sector have commenced. This paper examines the causal relationship between exports, imports, and Iraq’s economic growth. The data are annual time series for the period 1980-2017. Thereafter, the data are stationary in different levels. Johansen cointegration is applied to figure out the long-run association among the variables. Moreover, Granger causality test has been used to direct the causality among variables. This paper finds that in the long run, exports and imports on gross domestic product are co-integrated and variables have a long-run association. The Granger causality result shows that exports affect economic growth, while imports also have a positive impact on Iraq’s economic growth. On the contrary, the relationship between exports and imports show that any increase in the volume of exports will increase the volume of imports. However, the converse is not true as the volume of imports does not influence exports in Iraq.

Bank branching, concentration, and local economic growth in pre-WW1 England and Wales

2020 ◽  
Author(s):  
Walter Jansson
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Instrumental Variable ◽  
Fixed Effects ◽  
Banking Sector ◽  
Positive Impact ◽  
Local Economic Growth ◽  
Panel Fixed Effects ◽  
The Relationship ◽  
Bank Branching

Abstract This paper explores the relationship between the spread of bank offices, banking sector concentration, and economic growth in English and Welsh counties in the four decades before WW1. During this period, banks rapidly expanded their branch networks, while banking sector concentration increased. Findings from both panel fixed effects and instrumental variable regressions suggest that an increase in the number of bank offices in English and Welsh counties had a positive impact on local economic growth. There is no evidence of banking sector concentration being negatively associated with local economic performance prior to WW1.

scholarly journals Financial development and economic growth: panel evidence from BRICS

2019 ◽  
Vol 24 (47) ◽  
pp. 113-126 ◽  
Author(s):  
Biplab Kumar Guru ◽  
Inder Sekhar Yadav
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
Banking Sector ◽  
Market Development ◽  
Content Type ◽  
Stock Market Development ◽  
Development Indicators ◽  
Banking Sector Development ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between financial development and economic growth for five major emerging economies: Brazil, Russia, India, China and South (BRICS) during 1993 to 2014 using banking sector and stock market development indicators. Design/methodology/approach To begin with, the study first examined some of the principal indicators of financial development and macroeconomic variables of the selected economies. Next, using generalized method of moment system estimation (SYS-GMM), the relationship between financial development and growth is investigated. The banking sector development indicators used in the study include size of the financial intermediaries, credit to deposit ratio (CDR) and domestic credit to private sector (CPS), whereas the stock market development indicators are value of shares traded and turnover ratio. Also, some macroeconomic control variables such as inflation, exports and the enrolment in secondary education were used. Findings The examination of the principal indicators of financial development and macroeconomic variables have shown considerable differences between the selected economies. Results from the dynamic one-step SYS-GMM estimates confirm that in presence of turnover ratio, all the selected banking development indicators such as size of financial intermediaries, CDR and CPS are positively significantly determining economic growth. Similarly, in presence of all the selected banking sector development indicators, value of shares traded is found to be positively significantly associated with economic growth. However, the same is not true when turnover ratio is regressed in presence of banking sector variables. Overall, the evidence suggests that banking sector development and stock market development indicators are complementary to each other in stimulating economic growth. Practical implications A positive association between financial development and growth indicates that the policymakers should take necessary measures toward simultaneous development of both banking sector as well as stock market for inducing growth. Originality/value The present paper attempts to examine the relationship between financial development and growth using both banking sector and stock market development indicators which has not been attempted before for BRICS. Also, most of the existing studies are found in case of developed economies. This paper tries to fill this void by studying five major emerging economies.

scholarly journals SOCIOECONOMIC FACTORS OF STOCK MARKET DEVELOPMENT: ROLE OF TERTIARY EDUCATION

2020 ◽  
Vol 19 (Vol 19, No 2 (2020)) ◽  
pp. 224-245
Author(s):  
Md. Thasinul ABEDIN ◽  
Kanon Kumar SEN ◽  
Mohammad Rifat RAHMAN ◽  
Sharmin AKTER
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Banking Sector ◽  
Positive Impact ◽  
Tertiary Education ◽  
Market Development ◽  
Stock Market Development ◽  
Level Of Education ◽  
Long Run ◽  
Banking Sector Development

Considering economic growth and banking sector development as economic factors and tertiary level of education as a social factor, this paper explores their effect on stock market development in Bangladesh during the period 1976 to 2015. This paper reveals a significant positive impact of banking sector development and economic growth and an insignificant positive impact of tertiary level of education on stock market development both in the short-run and in the long-run. The positive long-run effect of socioeconomic factors on stock market development suggests that over time the rise in tertiary education, economic growth, and banking sector development contributes into the stock market development. Hence, government should give special attention into the development of tertiary education in addition to accelerating economic growth and banking sector development to ensure broad base stock market.

scholarly journals Banking Sector Development And Economic Growth In Hong Kong: An Empirical Investigation

2013 ◽  
Vol 12 (5) ◽  
pp. 519 ◽  
Author(s):  
SY Ho ◽  
NM Odhiambo
Keyword(s):  
Economic Growth ◽  
Hong Kong ◽  
Financial Development ◽  
Banking Sector ◽  
Bounds Testing ◽  
Banking Sector Development ◽  
Domestic Credit ◽  
Bounds Testing Approach ◽  
The Relationship ◽  
Ardl Bounds Testing Approach

In this study, we examine the dynamic relationship between bank-based financial development and economic growth in Hong Kong. We attempt to answer one critical question: Does the relationship between bank-based financial development and economic growth in Hong Kong follow a supply-leading or a demand-following response? In other words, which sector drives economic development in Hong Kong the real sector or the nominal sector? Unlike the majority of previous studies, this study uses the newly developed ARDL-bounds testing approach to examine this linkage. The ARDL-bounds testing approach has numerous advantages over other cointegration techniques, especially when a short time-series dataset is used. In order to test the robustness of the empirical results, two proxies of bank-based financial development have been used; namely: 1) the domestic credit provided by the banking sector as a ratio of GDP and 2) the banks' deposit as a ratio of GDP. Our empirical results show that the relationship between bank-based financial development and economic growth in Hong Kong is sensitive to the proxy used to measure the banking sector development. When domestic credit provided by the banking sector is used as a proxy for bank-based financial development, a distinct supply-leading response is found to prevail. However, when the banks' deposit is used as a proxy for bank development, a demand-following response is found to predominate. These results hold, irrespective of whether the causality is estimated in the short run or in the long run.

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