Political career concerns and bank lending in China

Tian, Yunlin; Pan, Xiaofei; Pang, Baoqing; Wu, Yiping

doi:10.1016/j.ememar.2023.101000

Cited by 6 publications

(1 citation statement)

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“…Policymakers have the ability to use the banking system to promote economic growth, especially when it is consistent with their goals (Tian et al ., 2023), so there is growing evidence linking financial inclusion and economic growth. Daud and Ahmad (2023) examined the relationship between financial inclusion, digital technology, and economic growth and found that financial inclusion and digital technology positively and significantly impact economic growth.…”

Section: Study Background and Definition Of Research Hypothesesmentioning

confidence: 99%

Institutions and economic growth: the role of financial inclusion, public spending on education and the military

Jungo

2024

REPS

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PurposeThe paper aims to investigate the relationship between institutions and economic growth in developing countries, considering the role of financial inclusion, education spending and military spending.Design/methodology/approachThe study employs dynamic panel analysis, specifically two-step system generalized method of moments (GMM), on a sample of 61 developing countries over the period 2009–2020.FindingsThe results confirm that weak institutional quality, weak financial inclusion and increased military spending are barriers to economic growth, conversely, increased spending on education and gross capital formation contribute to economic growth in developing countries. Regarding the specific institutional factor, we find that corruption, ineffective government, voice and accountability and weak rule of law contribute negatively to growth.Practical implicationsThe study calls for strengthening institutions so that the financial system supports economic growth and suggests increasing spending on education to improve access to and the quality of human capital, which is an important determinant of economic growth.Originality/valueThe study contributes to scarce literature by empirically analyzing the relationship between institutions and economic growth by considering the role of financial inclusion, public spending on education and military spending, factors that have been ignored in previous studies. In addition, the study identifies the institutional dimension that contributes to reduced economic growth in developing countries.

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Section: Study Background and Definition Of Research Hypothesesmentioning

confidence: 99%