relationship between financial development and economic growth pdf

Relationship between financial development and economic growth pdf

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The influence and effects of financial development on economic growth. An empirical approach

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This study empirically investigates the long-run relationship and short-run dynamics between financial development and economic growth in Cape Verde for the period - The study employs the Johansen and Juselius approach to cointegration, pairwise granger causality test for causality and the VECM approach was also explored. Control variables such as interest rate and population growth rate were included in the analysis. The empirical result indicates the existence of a long run relationship between economic growth and financial development variables in Cape Verde. However, no short run relationship exists between economic growth and financial development variables but between the control variables and economic growth. The study also found a unidirectional relationship running from financial development to economic growth when money supply M2 is used as well as a bidirectional causality running from financial development to economic growth and vice versa, when domestic credit provided by commercial bank DCPB is used. The study found a unidirectional causality from economic growth to domestic credit to private sector DCTP.

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 to using banking sector and stock market development indicators. 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.

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The influence and effects of financial development on economic growth. An empirical approach

April 12, by Maya Gainer. She plans to pursue a career in the private sector in New York. Economists have long debated whether a more developed financial sector helps drive economic growth. To some, the global financial crisis suggested thatan abundance of financial intermediaries and insufficient regulations can lead to economic collapse. However, during the same time period, increased access to financial institutions in developing countries has had a profound impact on their growth—even though the majority of these transactions have occurred through non-traditional means like mobile phones.

Citation: Md Qamruzzaman, Wei Jianguo. Investigation of the asymmetric relationship between financial innovation, banking sector development, and economic growth[J]. Quantitative Finance and Economics, , 2 4 : Article views PDF downloads Cited by Tables Md Qamruzzaman, Wei Jianguo. Quantitative Finance and Economics , , 2 4 :

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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 to using banking sector and stock market development indicators. 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.

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Financial Development and Economic Growth

В течение часа то же самое случится с остальными пятью.

2 comments

  • DorothГ©e D. 21.05.2021 at 07:53

    Target times pdf free download why are you suitable for this job sample answer pdf

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  • Avril M. 21.05.2021 at 14:00

    Dept. of Economics, Trinity College, Connecticut, USA. This paper investigated the long run relationship between financial development and economic growth in​.

    Reply

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