Financial development convergence

Do country risk and financial uncertainty matter for energy commodity futures?

“…Awareness has grown that a detailed knowledge of the role of country risk in financial markets is required to have a proper understanding of its transmission mechanism. Much attention has been paid to the relationship between country risks and economic activities (Bahadir & Valev, ; Brückner & Gradstein, ; Lee & Lee, ; C. Liu, Sun, Chen, & Li, ). Although there are some studies addressing the relationship between commodity prices and the economic policy uncertainty index (Reboredo & Uddin, ), the nature of country risk is rather divergent, and cannot be reflected in one single dimension.…”

“…Awareness has grown that a detailed knowledge of the role of country risk in financial markets is required to have a proper understanding of its transmission mechanism. Much attention has been paid to the relationship between country risks and economic activities (Bahadir & Valev, 2015;Brückner & Gradstein, 2015;Lee & Lee, 2018a;C. Liu, Sun, Chen, & Li, 2016).…”

Does financial VAT affect the size of the financial sector?

“…Once robustness is applied, we obtain a first model that includes all the variables that are relevant in the literature, in addition to our interest variables: the interaction of the financial rate with financial VAT (tb*fVAT) and with separate taxes (tb*separate). If that model does not have good econometric properties, we build successive models, obtained (2015) psize (-) Kahn et al (2006) and Bahadir and Valev (2015) debt ( Kim et al (2010), Luca and Spatafora (2012), Asongu (2014) and Bahadir and Valev (2015), ( (2014) energy (+) Shahbaz et al (2013) Asset structure capital (+) Sharpe (1995) and Altunbas et al (2010), Haldane and May (2011) liquidity (+) Sharpe (1995) and Altunbas et al (2010), Haldane and May (2011) from the previous one, eliminating successively the non-significant variables, until we obtain a model with good econometric properties. We have applied ImPesaran-Shin and Phillips-Perron unit-root tests and we have not found any unit root problem on dependent variables.…”

“…Macroeconomic variables are also taken into account in the literature, for instance economic stability, measured by the inflation rate (Huybens and Smith, 1999;English, 1999;Boyd et al, 2001;Khan et al, 2006;and Bahadir and Valev, 2015), the degree of economic prosperity of a country, measured by the level of GDP per capita, or the population, (King and Levine, 1993;Levine, 1997;Jaffee and Levonian, 2001). Nonetheless, Cecchetti and Kharroubi (2012) show that financial development affects growth: it is good only up to a point, after which it becomes a drag on growth (see also Dominguez Martinez and Lopez Del Paso, 2014).…”

Revisiting the Effect of Financial Development on Economic Growth after the 2008 Global Financial Crisis

“…However, the recent economic-financial crisis, 2008 Global Financial Crisis (GFC), has renewed the attention on whether the financial development still promotes economic growth or not [10][11][12][13]. The GFC holds significant importance among other worldwide crisis due to its contagion and speed of spread.…”