The drivers of economic growth and development are among the most important issues explored by economic theory. Sustainability of economic development was previously linked by various economic schools of thought to natural resources (agriculture, land, minerals, metals etc.), labor force (including skills, productivity, and education), entrepreneurship or technology and innovation. Capital was later introduced by classical economic theory as the key element. Without significant capital accumulation, all other production factors remain idle. The value added of the production process is a result of the existence, the accessibility and the cost of capital. Therefore, the development and the sophistication of the financial sector has gradually become very important for any nation interested in sustainable growth. This paper investigates the impact of financial sector development, sophistication and performance on economic growth based on a panel regression methodology. We found statistically significant results that confirm the importance of this connection and that are very consistent with economic theory and previous relevant articles and studies.
This paper analyses the impact of insurance sector development on economic growth based on a sample that includes 14 Central and Eastern European (CEE) post-transition countries for a period of 19 years, from 1998 to 2016. Considering the presence of cross-section dependence and multiple structural breaks, recently developed panel econometric techniques were employed and led to the following conclusions: (1) life insurance has no significant effect on economic growth in both panel and individual countries, (2) non-life insurance positively affects economic growth in both panel and individual countries, (3) Dumitrescu and Hurlin causality test indicates a unidirectional causality running from economic growth to both life and non-life insurance and infers the absence of causal connection between life and non-life insurance and economic growth.
Stock markets foster economic growth through meeting the fund requirements of the firms by individual and institutional investors. Pension funds and insurance companies with their long-term investment horizon are critical institutional investors in capital markets. Therefore, this article explores the effect of pension funds and insurance companies on stock market development in 15 emerging market economies over the 2004–2019 period through panel cointegration and causality tests. The causality analysis revealed that stock market development had a significant impact on pension funds and the insurance sector in the short term. However, the cointegration analysis revealed that pension funds had a positive effect on stock market development in Brazil, Chile, Hungary, Mexico, Peru, and South Africa and the insurance sector had a positive impact on stock market development in Chile, Indonesia, Korea Republic, Philippines, and South Africa in the long term.
The paper refers to traditional methods of appreciating the financial equilibrium of the agricultural company, methods based on the study of the company's financial statements. As far as financial equilibrium is concerned, we consider that there's no specific indicator to be analyzed in order to appreciate financial equilibrium due to different perception the stakeholders have on the enterprise equilibrium. In real life we often see the same indicator calculated differently according to the objective pursued by the analyst. This paper shows the calculation method of the static financial equilibrium indicators, the evolution and the factors leading to the alteration of these indicators, their financial management. It also determines financial equilibrium by financing rates method and assesses financial equilibrium using profitableness rates for agricultural holding companies. It concludes with the specific factors that affect the financial equilibrium in agricultural holdings.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.