On Financial Development and Economic Growth in the Arab Republic of Egypt

Mohieldin, Mahmoud; Hussein, Khaled; Rostom, Ahmed Mohamed Tawfick

doi:10.1596/1813-9450-9008

Cited by 8 publications

(9 citation statements)

References 13 publications

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“…Marashdeh and Al-Malkawi (2014), on the other hand, failed to identify a statistic for the short-term relationship. Mohieldin et al (2019) found associations similar to those of our study in regard to the variables of real growth per capita, labor force, and trade openness, whereby a positive relationship was found in regard to financial development. The findings of our study provide strong support for the association between economic growth and financial development in both the long-and short-term.…”

Section: Discussionsupporting

confidence: 89%

The Short- and Long-Term Effects of Financial Sector Development on Economic Growth in Saudi Arabia: An ARDL Model Analysis

Aldaarmi¹

2021

IJEF

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The goal of this research was to explore Financial Development and Economic Growth in Saudi Arabia. This would provide evidence pertaining to the relationship between financial sector development and economic growth within the country’s context. In regard to methodology, this study purposed an Autoregressive Distributed Lag (ARDL) model and an ECM model to underline the short and long-term dynamics. To measure financial development, this study implemented the value of credits provided by the financial sector to the private sector divided by GDP. Furthermore, based on a comprehensive and holistic reading of the literature, this study also implemented the control variables of trade openness, gross fixed capital formation, and the labor force. The findings show that there are long- and short-term relationships between financial development and economic growth. The regression coefficients for the ARDL model and Unrestricted Error Correction Model (ECM) were found to be statistically significant at the 10% level. All control variables were found to influence the relationship between the independent and dependent variables.

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Section: Discussionsupporting

confidence: 89%

The Short- and Long-Term Effects of Financial Sector Development on Economic Growth in Saudi Arabia: An ARDL Model Analysis

Aldaarmi¹

2021

IJEF

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“…This study collaborates the study of Inoue (2019) that used India data between 1973 and 2004. Mohieldin et al (2019) examined the impact of financial development on economic growth in Egypt using time series data between 1980 and 2016. They utilized ARDL technique to analyze the new data set of financial development indexes released by IMF.…”

Section: Review Of Empirical Literaturementioning

confidence: 99%

“…A sound financial system is an indispensable ingredient to economic growth and development of any country. The last three decades have witnessed a growing research interest in finance-growth nexus, which was precipitated by financial crises and economic instability around the globe (Levine, 2005;Ang, 2005;Fitzgerald, 2006;Keho, 2017;Mohieldin et al, 2019). Debate on finance-growth nexus was confined to issue of direction of causality.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Financial Sector Development on Poverty Reduction in Nigeria: An Empirical Investigation

Saidu

Marafa²

2020

IJEFI

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This paper examines whether financial services (McKinnon conduit) or provision of credit is more effective in reducing poverty in Nigeria using data for the period 1980-2018. It employs Autoregressive and Distributed Lag Model (ARDL) Approach to estimate the parameters and cointegration analyses for income and consumption models. The results of the ARDL Bound Test to Cointegration indicate a long-run relationship among the variables in the two models. The study reveals that availability and improvement in financial services is more beneficial than credit growth. In addition, the study suggests that financial instability may hurt the poor and retards the beneficial effect of financial development particularly in the short run. The paper recommends intensification of effort towards second-generation reforms, such as, design and implementation of financial inclusion policies that involve improving access to financial services that foster inclusive-growth. Furthermore, the study recommends guided deregulation in credit market as a way of precluding or subduing its susceptibility in triggering full-blown crises that is detrimental to the poor's aggregate welfare.

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“…Omran and Bolbol (2003) asserted in this context that if Arab countries want to attract more FDIs flows, they must reform their financial systems. Also, the existence of a developed banking system and an efficient stock market are important determinants to attract more FDIs as deducted by Nasser and Gomez (2009). Mahmoud (2010) also added that financial development can attract more FDIs inflows through its impact on liquidity, efficient resource allocation and transaction cost reduction.…”

Section: Empirical Analysis and Discussionmentioning

confidence: 99%

“…As for Egypt, the issue of providing the necessary financial resources to raise investment rates and achieve the effective use of those resources across sectors is one of the fundamental issues that received great attention. So, considerable efforts are exerted by the Egyptian Government concerning the liberalization of the financial sector since 1991 (El-Antary, 2005;Ibrahiem, 2020;Mohieldin et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial development and natural resources nexus in Egypt: the role of clean energy sources and foreign direct investment

Ibrahiem

Sameh

2021

IJESM

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Purpose Achieving the goals of the sustainable development strategy and Egypt’s vision 2030 depends mainly on the existence of sources of funds. And since Egypt faces a great challenge in obtaining finance, then analyzing the drivers of financial development is a vital issue and there is a persistent need to shed light on the key obstacles for it. Thus, this paper aims to empirically assess the impact of natural resources, foreign direct investment (FDI) net inflows, education and clean energy sources on financial development in Egypt using the data of the 1971–2014 period. Design/methodology/approach The paper uses auto-regressive distributed lag and Toda-Yamomoto approaches to fulfill the purpose. Findings Empirical results signify that all variables except natural endowments stimulate financial development which can suggest the presence of the natural resources curse in Egypt. Moreover, the feedback effect between financial development and FDI is recognized. Clean energy sources cause financial development and natural endowments. Financial development causes natural endowments and FDI leads to the deployment of more clean energy resources. Practical implications Several crucial policy implications are suggested based upon these results as improving the quality and quantity of education and encouraging both domestic and foreign investors by providing several incentives. Moreover, the government has to enhance green finance through financing solar energy projects and other environmentally friendly projects. Originality/value It is the first research for Egypt that explores natural resource-financial development nexus using time series analysis according to our information, and two important variables are included in the model which is clean energy sources and FDI. Then, although several studies examined the impact of financial development on clean energy no empirical study before assessed the impact of clean energy on financial development.

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On Financial Development and Economic Growth in the Arab Republic of Egypt

Cited by 8 publications

References 13 publications

The Short- and Long-Term Effects of Financial Sector Development on Economic Growth in Saudi Arabia: An ARDL Model Analysis

The Short- and Long-Term Effects of Financial Sector Development on Economic Growth in Saudi Arabia: An ARDL Model Analysis

The Effect of Financial Sector Development on Poverty Reduction in Nigeria: An Empirical Investigation

Financial development and natural resources nexus in Egypt: the role of clean energy sources and foreign direct investment

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