scholarly journals Investigating the Relationship Between Country Competitiveness and Financial Market Development in Times of Crisis

2021 ◽  
Vol 12 (4) ◽  
pp. 38
Author(s):  
George Galanos ◽  
Thomas Poufinas ◽  
Charalampos Agiropoulos
Keyword(s):  
Economic Growth ◽  
Financial Market ◽  
Foreign Market ◽  
Market Development ◽  
Real Economy ◽  
Employment Level ◽  
Global Competitiveness ◽  
Financing Decisions ◽  
Financial Market Development ◽  
The Relationship

A country’s competitiveness depends on many factors related to general governance, effectiveness of markets, social development, and business perspectives. The role of financial markets for economic growth has been the subject of many scientific studies; most of them concluded that a well-developed financial system should improve the efficiency of financing decisions, favouring a better allocation of resources and thereby economic growth. The financial crisis that started in the summer of 2007 is still testing the strength of the global economic system. It started in the financial sector, but is now having an important impact on the real economy. The aim of this paper is to investigate the relationship between a country’s financial market development and its competitiveness in particular in times of crisis, with the use of a series of econometric models. We find evidence that financial market development is affected (with the anticipated sign of impact) by the Global Competitiveness Index, the GDP per capita and the (un)employment level of a country. It is also related (with an unexpected direction of impact) with the foreign market size and exports, as well as infrastructure. Our findings can be used by the policymakers of countries which wish to improve their competitiveness so as to steer the determining variables in the desired directions and approach their desired competitiveness levels.

Financial Development and Economic Growth: Analysis of Approaches to the Problem

2020 ◽  
Vol 12 (4-2) ◽  
pp. 251-266
Author(s):  
Alexander Novikov ◽  
◽  
Irina Novikova ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Market ◽  
Market Development ◽  
Methodological Framework ◽  
Review Of The Literature ◽  
Financial Market Development ◽  
Points Of View ◽  
The Impact ◽  
The Relationship

The article deals with debatable questions about the relationship between economic growth and financial development. Both foreign and Russian authors have opposite points of view on the relationship between economic growth and financial development. The article states that financial development for developing countries is a factor of economic growth. The authors give a review of the literature proving the influence of financial development and its mechanism – the financial market – on economic growth. To illustrate this conclusion, they analyze the research aimed at studying the theoretical aspects of assessing the ratio of the level of financial market development and economic growth. The authors also investigate the formation of a methodological framework for assessing the impact of the level of financial market development on economic growth; identify the methods to quantitatively measure the level of financial market development and economic growth. The article analyzes the recommendations to develop measures to enhance the significance of financial market for economic growth of the country.

scholarly journals The Influence of Financial Market Development on Economic Growth in BRICS Countries

2017 ◽  
Vol 53 (1) ◽  
pp. 7-24 ◽  
Author(s):  
Charles Wait ◽  
Tafadzwa Ruzive ◽  
Pierre le Roux
Keyword(s):  
Economic Growth ◽  
Financial Market ◽  
Method Of Moments ◽  
Market Development ◽  
Brics Countries ◽  
Financial Depth ◽  
Endogenous Growth Model ◽  
Financial Market Development ◽  
Generalised Method Of Moments ◽  
Finance Growth Nexus

Abstract The debate about the influence of financial market development on economic growth has been ongoing for more than a century. Since Schumpeter [1912] wrote about the happenings on Lombard Street there has been growing interest in the way financial market development affects economic activity and growth. As development issues have deepened, inquiry into the finance-growth nexus has also grown, with recent research focusing on various aspects of financial crisis and developments in the BRICS economies. This study investigates the influence of financial market development on the higher growth of BRICS as compared to non-BRICS counterparts. The research utilizes the Generalised Method of Moments and an extended endogenous growth model to estimate the influence of a set of financial market indicators. We find that higher private sector levels of credit and financial depth in the BRICS economies contributed to the economic growth of those economies.

scholarly journals Moderating Role of Financial Market Development on the Relationship between Stock Liquidity and Dividend

2020 ◽  
Vol 16 (2) ◽  
pp. 77-99
Author(s):  
Mohd Ashari Bakri ◽  
Amin Nordin Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Wei Theng Lau
Keyword(s):  
Emerging Markets ◽  
Financial Market ◽  
Emerging Market ◽  
Investment Strategy ◽  
Market Development ◽  
Stock Liquidity ◽  
Financial Market Development ◽  
The Relationship ◽  
Moderating Role

This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed firms from 22 emerging markets to be extrapolated in the emerging market context. To analyse the data, this article used the panel data Tobit model and panel logistic regression, both with random effects. The analysis revealed that financial market development has a positive moderating effect on the relationship between stock liquidity and dividend by improving local market liquidity and mitigating information asymmetry. The study findings provide information for managers to devise investment strategy in the emerging markets. This article provides new insights into the financial market development moderating role on the relationship between stock liquidity and dividend.

scholarly journals FINANCIAL MARKET DEVELOPMENT AND ECONOMIC GROWTH: EVIDENCE FROM ASEAN AND CEE REGION

2021 ◽  
Vol 23 (2) ◽  
pp. 481-494
Author(s):  
Budi Setiawan ◽  
Adil Saleem ◽  
Robert Jeyakumar Nathan ◽  
Zoltan Zeman ◽  
Robert Magda ◽  
...  
Keyword(s):  
Economic Growth ◽  
Financial Market ◽  
Market Development ◽  
Financial Market Development

scholarly journals Agricultural Financial Market In Uzbekistan, Its Condition And Perspectives For Small And Medium Size Businesses

2011 ◽  
Vol 3 ◽  
Author(s):  
Dilbar Khalmirzaeva
Keyword(s):  
Financial Development ◽  
Financial Market ◽  
Agricultural Sector ◽  
Market Development ◽  
Medium Size ◽  
Agrarian Sector ◽  
Financial Market Development ◽  
The Relationship ◽  
Research Show

The aim of this paper is to analyze the relationship between financial market development and agricultural sector in Uzbekistan. Research tries to answer these questions an empirical way and tries to clear questions in a role of financial development as also other variables in agrarian sector. Results of this research show that the financial market in agrarian sector has some weak places. 

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