Does financial development affect growth?

Saci, Karima; Giorgioni, Gianluigi; Holden, K.

doi:10.1080/00036840701335538

Cited by 69 publications

(52 citation statements)

References 27 publications

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“…They identify internal finance as an important variable which is omitted in the finance and growth literature. Similar to some existing literature [Beck and Levine 2004;Loayza and Rancière 2006;Saci, Giorgioni, and Holden 2009], the authors provide evidence of a negative impact of banks' development on economic growth in the shortterm. However, they could not establish whether stock markets contribute to growth in a signifi cant manner when the effect of internal finance was included.…”

Section: Literature Reviewsupporting

confidence: 70%

Banks, non-bank companies and stock exchange: do we know the relationship?

Ghimire¹,

Gautam

Karki³

et al. 2015

EBR

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e complex relationship between intrinsic and extrinsic rewards Orni Gov Improvement of the communication between teachers and students in the coaching programme and in a process of action research Review, Vol. 1 (15), No. 4, 2015: 25-45 DOI: 10.18559/ebr.2015Abstract : This paper investigates the role played by the banking sector in founding, sustaining and developing stock exchange markets. The paper has constructed data on market capitalisation separately for banks and non-bank companies. We apply cointegration techniques developed by Engle and Granger [1987] and Johansen [1988] and we bootstrap the variables to examine the nature of relationship between the banks and stock markets. We found that banks have played an important role in the development of stock exchanges. Further, the empirical analysis made amongst ten developed and developing exchanges suggests a listing of non-bank companies important for development of stock markets. These findings have also been verified by analysing the data of an exchange not included in the test.

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Section: Literature Reviewsupporting

confidence: 70%

Banks, non-bank companies and stock exchange: do we know the relationship?

Ghimire¹,

Gautam

Karki³

et al. 2015

EBR

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“…as n-dimensional over annual periods. Empirical results in most of the papers provide that there is a statistically significant relationship between growth and financial development indicators (Akinci Yuce, Akinci, and Yilmaz, 2014;Beck et al, 2008;Beck, Georgiadis, and Straub, 2014;Beck et al, 2000;Benhabib and Spiegel, 2000;Calderón and Liu, 2003;Caporale et al, 2015;Chen and Quang, 2014;Chen, Wu, and Wen, 2013;Chow and Fung, 2013;Christopoulos and Tsionas, 2004;Demetriades and Hook Law, 2006;Ductor and Grechyna, 2015;Dwyfor Evans, Green, and Murinde, 2002;Fisman and Love, 2004;Habibullah and Eng, 2006;Hassan, Sanchez, and Yu, 2011;Ketteni et al, 2007;Lartey and Farka, 2011;Lee and Chang, 2009;Levine et al, 2000;Li, Zhang, and Ma, 2015;Wachtel, 2000, 2002;Saci, Giorgioni, and Holden, 2009;Stengos and Liang, 2005;Zhang, Wang, and Wang, 2012). However, in some of the papers, there is no clear consensus on the relationship between financial development and economic growth for all measurements of financial development (Bangake and Eggoh, 2011;Beck and Levine, 2002;Rioja and Valev, 2004;Samargandi, Fidrmuc, and Ghosh, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

Uyar¹,

Uyar²

2018

Prague Economic Papers

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This paper seeks to investigate the effect of financial development on growth in OECD countries during 1999-2014. The aim of the analysis is to study the dependence of growth on given financial development indicators along quantiles of the conditional growth distribution, taking into account the effect played by each country over time. For the purpose of the empirical analysis, it performed the instrumental variable quantile regression panel data (IV-QRPD) model suggested by Powell (2016). The findings of IV-QRPD model indicated that the effect of finance on growth is changing along quantiles of the conditional growth distribution. That is to say, we provide some evidence that high-growth OECD countries react to the changes in financial development less than low-growth countries.

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“…The literature emphasizes the value of openness to international trade, both as a means of affecting the transfer of technical progress and as an engine of growth [51,52]. Trade, either in the form of exports or imports represents growth-enhancing interactions (specialization, exchange of ideas through exports or acquiring foreign technology through quality imports) among countries acting as a channel for knowledge dissemination; thus, more open economies should chalk higher growth rates [53].…”

Section: Other Determinants Of Economic Growthmentioning

confidence: 99%

Entrepreneurship and Economic Growth: Does Entrepreneurship Bolster Economic Expansion in Africa?

Emm¹,

Ks²,

Gomolemo³

et al. 2017

J Socialomics

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Entrepreneurship, with its focus on opportunities, is often seen as one of the cornerstones of poverty alleviation in sub-Saharan Africa (SSA). One of the key objectives of modern economics is to determine factors that influence the economic development. This paper, therefore, seeks to discuss entrepreneurship as one of the factors that influence the economy of a nation, either directly or indirectly. It is a fact that entrepreneurship plays a significant part in shaping the landscape of a country's economy. Economists and policy makers recognize this fact. In fact, entrepreneurship is the engine of economic growth and it has come to be perceived as a catalytic agent for expansion and promotion of productive activities in every sphere of economic life all over the world. This research will focus on finding out how entrepreneurship influences the economy of sub-Saharan Africa. The main objective of this paper is to show the significant effect of entrepreneur towards economic prosperity. The paper argues that entrepreneur is positively correlated to economic growth than foreign aid. The paper shows that entrepreneurship positively explains the variations in the growth of African countries. It is, thus, reasonable to contend that entrepreneurship in developing economies including Africa even if replicative is instrumental to unlocking economic growth, create employment and reduce poverty. The paper further examines some of the challenges faced by entrepreneurs in sub-Saharan Africa and provide some policy recommendations.

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Does financial development affect growth?

Cited by 69 publications

References 27 publications

Banks, non-bank companies and stock exchange: do we know the relationship?

Banks, non-bank companies and stock exchange: do we know the relationship?

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

Entrepreneurship and Economic Growth: Does Entrepreneurship Bolster Economic Expansion in Africa?

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