Infrastructure-Structural Transformation Nexus in Africa: The Role of Financial Sector Development

2021 ◽  
Vol 22 (1) ◽  
pp. 124
Author(s):  
Raifu ◽  
Nnadozie ◽  
Adeniyi
Keyword(s):  
Structural Transformation ◽  
Financial Sector ◽  
Financial Sector Development

scholarly journals Role of Financial Sector Development as a Contingent Factor in the Remittances and Growth Nexus: A Panel Study of Pacific Island Countries

2018 ◽  
Vol 3 (1) ◽  
pp. 51-74 ◽  
Author(s):  
Tiru K. Jayaraman ◽  
Lin Sea Lau ◽  
Cheong Fatt Ng
Keyword(s):  
Economic Growth ◽  
Technical Assistance ◽  
Panel Study ◽  
Financial Sector ◽  
Institution Building ◽  
Pacific Island ◽  
Domestic Investment ◽  
Financial Sector Development ◽  
Pacific Island Countries

Except for emergencies and for technical assistance for raising skills and institution building, foreign aid to Pacific island countries (PICs) for budgetary support has been phased out since the late 1990s. Because of the small sized domestic markets, foreign direct investment (FDI) is small and is confined to development of tourism infrastructure. On the other hand, inward remittances received from the rising number of islanders migrating overseas for work are increasing, far exceeding aid and FDI. However, influence of remittances on economic growth depends on financial sector development (FSD) for mobilizing the savings from the remittance receipts for domestic investment. This paper assesses the role of FSD in the nexus between remittances and economic growth through a panel study of five major PICs, namely Fiji, Samoa, Solomon Islands, Tonga and Vanuatu.  The study findings show that the ongoing efforts for strengthening FSD have to be stepped up by focusing on financial inclusion through spread of branchless banking and promotion of  information and communication technology.

Conclusion and Recommendations

2014 ◽  
pp. 226-238
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Financial Sector ◽  
Policy Implications ◽  
Future Research ◽  
Financial Sector Development ◽  
Research Findings ◽  
Potential Channels

This book started with a brief review of different outlooks on the role of financial sector development in the process of economic growth. Then it highlighted the fact that recent studies, particularly those originating from modern growth theory, suggest that financial intermediation affects growth through various channels. To test this proposition, an empirical model was built, data were obtained, empirical tests were carried out, and results were discussed. The final chapter in this book, therefore, summarises key research findings and discusses the potential channels through which financial sector development affects the economic growth process. The chapter further highlights contributions of this research to growth studies, discusses policy implications arising from the findings of this research, and provides directions for future research and analysis.

A new theory of innovation and growth: the role of banking intermediation and corruption

2016 ◽  
Vol 33 (4) ◽  
pp. 488-500 ◽  
Author(s):  
João Tovar Jalles
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Financial Sector ◽  
Equilibrium Analysis ◽  
Model Specification ◽  
Content Type ◽  
Financial Sector Development ◽  
Endogenous Growth Model ◽  
The Relationship

Purpose There has been an increased interest in the role of the financial sector and institutional quality in the development process. Design/methodology/approach This paper addresses the relationship between corruption and financial sector development by constructing a Schumpeterian endogenous growth model, allowing for the entry of competitive firms with an explicit role for politics and banking. Findings Assuming that technologically advanced firms are located in developed countries and backward firms in developing countries, the model in this study suggests that low corruption are more growth enhancing in the former group of countries. Better institutions stimulate entry by reducing banking screening costs and entry is more growth enhancing in sectors closer to the technological frontier. Research limitations/implications The model in this study is a partial equilibrium analysis and one should include a role for labour markets to address the household’s problem and enrich the model’s conclusions. Secondly, the model specification rests on the fact that the degree of corruption is correlated with the level of institutions. Even though this might be subject to some criticism, this is a common practice across the literature and so, it is clearly a matter of taste. Practical implications The main policy conclusion is that anti-corruption policy initiatives should prioritize corruption that distorts incentives with respect to productive investment that directly and negatively affects growth. Originality/value This paper addresses the relationship between corruption and financial sector development by constructing a Schumpeterian endogenous growth model, allowing for the entry of competitive firms with an explicit role for politics and banking.

scholarly journals ROLE OF ICT AS A CONTINGENCY FACTOR IN FINANCIAL SECTOR DEVELOPMENT, REMITTANCES, AND ECONOMIC GROWTH NEXUS: AN EMPIRICAL STUDY OF INDONESIA

2020 ◽  
Vol 23 (3) ◽  
pp. 365-388
Author(s):  
Keshmeer Kanewar Makun ◽  
T.K. Jayaraman
Keyword(s):  
Economic Growth ◽  
Financial Sector ◽  
Testing Procedure ◽  
Annual Data ◽  
Bounds Testing ◽  
Financial Sector Development ◽  
Distributed Lag ◽  
Complementary Role ◽  
Speed Up

This study examines the role of ICT as a factor in Indonesia’s financial sector development, remittances, and economic growth nexus using annual data from 1984-2017. We use the bounds testing procedure based on the Autoregressive Distributed Lag framework and the neoclassical growth model. The findings of the study reveal that ICT has indeed emerged as a significant factor in the remittance-growth nexus by playing a complementary role in financial sector development. The policy implication is that ICT needs to be supported at all levels and the financial inclusion process should be carried forward as it has all the potential to speed up economic growth and development.

Sign in / Sign up

Export Citation Format

Share Document