Financial Development and Economic Growth: Evidence from Ten New EU Members

Caporale, Guglielmo Maria; Rault, Christophe; Şova, Robert; Sova, Anamaria

doi:10.2139/ssrn.1499786

Cited by 73 publications

(69 citation statements)

References 43 publications

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“…When inflation is high, firms become more reluctant to make long-run commitments. We expect a negative relationship between inflation and GDP growth (Caporale et al, 2009). …”

Section: Research In Applied Economicsmentioning

confidence: 93%

“…Trade of goods and services represents the exchange of goods and services outside the country as a percentage of GDP (Caporale, et al, 2009). It shows the level of interaction with the rest of the world.…”

Section: Research In Applied Economicsmentioning

confidence: 99%

“…Trade of goods and services proxies international trade openness and is expected to impact positively on economic growth. Gross domestic investment represents investment in the economy as a percentage of GDP (Caporale et al, 2009). Increased investment enhances economic growth and the expected relationship between the two is positive.…”

Section: Research In Applied Economicsmentioning

confidence: 99%

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The Relationship between Financial Development and Economic Growth in Africa

Musamali

Nyamongo²,

Moyi³

2014

RAE

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This study examines the relationship between financial development and economic growth. It presents evidence on a cross section of 50 African countries whose data is available for the period 1980-2008. Two proxies of financial development are employed: the ratio of credit to the private sector to total GDP and the ratio of broad money (M2) to total GDP. We establish a positive relationship between financial development and economic growth. However, we find that the relationship between private sector credit and economic growth is much stronger than the relationship between money supply and economic growth. In addition, we find that the relationship between financial sector development and economic growth is bi-directional. The results suggest that both the financial sector and the real sector are important in influencing Africa's current and future growth trajectory.

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“…When inflation is high, firms become more reluctant to make long-run commitments. We expect a negative relationship between inflation and GDP growth (Caporale et al, 2009). …”

Section: Research In Applied Economicsmentioning

confidence: 93%

Section: Research In Applied Economicsmentioning

confidence: 99%

Section: Research In Applied Economicsmentioning

confidence: 99%

See 1 more Smart Citation

The Relationship between Financial Development and Economic Growth in Africa

Musamali

Nyamongo²,

Moyi³

2014

RAE

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“…We examine the empirical relationship between financial and economic growth in Bangladesh over the period of 1985-2014 …”

Section: Introductionmentioning

confidence: 99%

“…

ABSTRACTWe examine the empirical relationship between financial and economic growth in Bangladesh over the period of 1985-2014

Contribution/ OriginalityThis contribution of this study is to investigate the relationship between financial development and economic growth nexus in Bangladesh by considering a new set of financial indicators. This study reveals the reasons behind a weak financial system in Bangladesh which has of great relevance for policy matters.

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confidence: 99%

Finance-Growth Nexus in Bangladesh? An Empirical Analysis

Amin

Hossain

2017

Asian Economic and Financial Review

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We examine the empirical relationship between financial and economic growth in Bangladesh over the period of 1985-2014 Contribution/ OriginalityThis contribution of this study is to investigate the relationship between financial development and economic growth nexus in Bangladesh by considering a new set of financial indicators. This study reveals the reasons behind a weak financial system in Bangladesh which has of great relevance for policy matters.

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Determinants of stock market development and price volatility in ASEAN plus three countries: The role of institutional quality

2019

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The present study investigates the determinants of stock market development and price volatility in a sample of the Association of Southeast Asian Nations (ASEAN) plus three countries. More specifically, the study explores the role of institutional quality indicators on stock market development and volatility. To achieve the objectives of the study, we use annual data from 1991 to 2014 and employ panel cointegration test, fully modified ordinary least square method, and heterogeneous noncausality test. Our empirical findings confirm the significant long‐run relationship among the variables. Similarly, our results of long‐run elasticities on stock market development and volatility indicate that the institutional freedom indicators such as regulation, size of the government, sound money, and trade freedom have significant positive effect on stock market development, and these indicators, along with legal system, have substantial negative impact on stock price volatility. We also find significant short‐run causalities of stock market development and price volatility with the macroeconomic variables. Given these results, our study suggests that the institutional freedom indicators not only promote stock market development, but they also effectively reduce stock price volatility in ASEAN plus three countries.

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Financial Development and Economic Growth: Evidence from Ten New EU Members

Cited by 73 publications

References 43 publications

The Relationship between Financial Development and Economic Growth in Africa

The Relationship between Financial Development and Economic Growth in Africa

Finance-Growth Nexus in Bangladesh? An Empirical Analysis

Determinants of stock market development and price volatility in ASEAN plus three countries: The role of institutional quality

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