Financial progress, inward remittances, and economic growth in Bangladesh: Is the nexus asymmetric?

Golder, Uttam; Rumaly, Nishat; Hossain, Mohammad Kamal; Nigar, Meher

doi:10.1016/j.heliyon.2023.e14454

Cited by 14 publications

(15 citation statements)

References 41 publications

(95 reference statements)

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“…We conclude that non-linear causality extends from (FD) to (EG) in Algeria, which is consistent with findings of Al Khatib (2023), Golder et al (2023), Azimi (2022), Zungu (2022), Mei et al (2022), and Ductor and Grechyna (2013). These Studies found a Nonlinear causality from (FD) to (EG).…”

Section: Resultssupporting

confidence: 91%

“…Several studies have utilized the non-linear autoregressive distributed lag (NARDL) model to explore the asymmetric effects of (FD) and other factors on (EG). For example, Golder et al (2023) found that FD and remittances have an asymmetric influence on EG, with positive shocks accelerating EG while negative shocks slowing it down. Azimi (2022) analyzed the asymmetric effects of finance indicators on EG in China using NARDL, revealing a significant long-run relationship between finance and EG, with capital and money market indicators affecting EG differently in both short and long runs.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Al khatib,

Alshaib,

Kanaan

2023

Sage Open

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This study examines the complex interaction between Financial Development (FD) and Economic Growth (EG) in Algeria from 1980 to 2020 using nonlinear modeling techniques. We apply the Non-Linear Causality test with Transfer Entropy, a novel method in this literature, to confirm the nonlinear causality from FD to EG. We also use the Nonlinear Autoregressive Distributed Lag (NARDL) model and the Cumulative Dynamic Multiplier (CDM) to establish the long-run equilibrium and the short-run dynamic relationship between FD and EG. The NARDL results support the Transfer Entropy findings and show that FD has a symmetric impact on EG in both the short and long term. Positive and negative shocks on FD affect EG similarly and the imbalance is corrected in about 6 years. This study provides useful information for policymakers and stakeholders to design policies that promote (EG) and development in Algeria by enhancing FD and mitigating shocks. JEL Codes: C45, C32, E44, O16, O53

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Section: Resultssupporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 99%

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Al khatib,

Alshaib,

Kanaan

2023

Sage Open

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“…However, there may be possibility of the interactive effects of financial development through external finance (trade, FDI and aid) on economic growth and the present paper incorporates that. Next, analyzing the nonlinear relation between financial development and economic growth is very recent in this area (Golder et al, 2023;Hasanov et al, 2023;Singh et al, 2023). The relationship between financial development and economic growth may not be linear throughout the time period.…”

Section: Research Gapmentioning

confidence: 99%

Financial development and growth nexus in Asian countries: mediating role of FDI, foreign aid and trade

Patra,

Sethi

2023

IJSE

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PurposeThis paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on economic growth for all Asian countries.Design/methodology/approachA fixed-effect model with Driscoll–Kraay panel corrected estimators was employed to find the direct and mediating impact of financial developments on growth for all 47 Asian economies from 1980 to 2020. The bootstrapped panel-quantile regression (BPQR) model is used to check how this effect varies for different income groups of countries.FindingsThe results demonstrated that financial development positively impacts countries' economic growth. The interaction effect of financial development with FDI, foreign aid and foreign trade negatively impacts economic growth. The BPQR results showed that FDI and foreign aid help in the growth of lower quantile economies; however, the impact is negative for middle- and upper-income countries. Trade impacts growth positively for all the quantiles of economies.Research limitations/implicationsThe results suggest that the Asian economies must continue to provide thrust on the financial development of their own countries to achieve better growth. It also implied that the dependence on external finance is good for low-income countries and not advisable for middle- and upper-income countries.Originality/valueTo the best of the authors’ knowledge, the current study is the first to provide empirical evidence on analyzing both the direct and interaction effect of financial development on economic growth by considering all the Asian economies.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2022-0587

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“…External factors have also played a significant role in boosting the economies of small, growing states. Foreign investment, remittances, imports, and currency swaps contribute to economic development [ 26 , 27 ]. The growing Ethiopian diaspora sends a substantial amount of money back home, with remittances steadily increasing over the years, reaching $5.8 billion in 2021.…”

Section: Introductionmentioning

confidence: 99%

“…In failed nations, sustainable growth and development may boost jobs, reduce poverty, and improve living conditions. Thus, all economic initiatives now aim for economic development and social well-being [ 23 , 26 , 27 , 29 ].…”

Section: Introductionmentioning

confidence: 99%

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

Hordofa

2023

Heliyon

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Financial progress, inward remittances, and economic growth in Bangladesh: Is the nexus asymmetric?

Cited by 14 publications

References 41 publications

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Financial development and growth nexus in Asian countries: mediating role of FDI, foreign aid and trade

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

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