The Effect of Globalization on Financial Development in the MENA Region

Falahaty, Manizheh; Law, Siong Hook

doi:10.1007/s11300-012-0242-6

Cited by 35 publications

(26 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Sarma and Pais (2011) found empirical evidence of a relationship between financial inclusion and economic growth using data from 49 countries. Falahaty and Hook (2013) showed that financial development is a significant determinant of economic growth. This finding shows that improving the function of the banking sector is very crucial to spur economic growth.…”

Section: Financial Inclusion and Economic Growthmentioning

confidence: 99%

The Impact of Financial Inclusion on Economic Growth, Poverty, Income Inequality, and Financial Stability in Asia

Ratnawati¹

2020

JAFEB

108

View full text Add to dashboard Cite

As an effort to achieve sustainable development and increase people's welfare, financial inclusion has become the policy agenda of many countries. Therefore, the effect of financial inclusion on economic growth, poverty, income inequality, and financial stability in several countries in Asia has become the goal and this is the subject of this study. Financial inclusion is measured by 3 dimensions, namely banking penetration, access to banking services, and use of banking services. Poverty ratio below the national poverty line and the Gini coefficient are used as indicators of poverty and income inequality. Financial stability is measured by Bank Z-Score and bank nonperforming loans. The results from the hypothesis test shows that all dimensions of financial stability simultaneously have significant influence on economic growth, poverty, income inequality, and financial stability. On the other hand, the partial impact of financial inclusion dimension on economic growth, poverty alleviation, income inequality, and financial stability in ten countries of Asia has not been optimal. The derived results of this study is required to be interpreted and considered by the Governments of each country in developing strategies for increasing financial inclusion, so that the policy to achieve sustainable development and enhancement of people's welfare can be achieved.

show abstract

Section: Financial Inclusion and Economic Growthmentioning

confidence: 99%

The Impact of Financial Inclusion on Economic Growth, Poverty, Income Inequality, and Financial Stability in Asia

Ratnawati¹

2020

JAFEB

108

View full text Add to dashboard Cite

show abstract

“…In this line, Odhiambo (2009) Demetriades and Hussein (1996) The seminal argument proposed by Mishkin (2009) is a theoretical in nature but it lacks empirical scrutiny. In connection to the Mishkin's (2009) hypothesis linking the relationship between globalization and financial development through the channel of institutional quality, few empirical studies have been emerged to understand the nexus between two (La Porta et al 1997, Huang and Temple 2005, García 2011, Falahaty and Law 2012, Chen and Emile 2013, Law et al 2015, Kandil et al 2015, Luo et al 2016, Muye and Muye 2017, Shahbaz et al 2018a. La Porta et al (1997) in their empirical study found that trade openness (proxy for globalization) promotes financial development for richer economies, but not for poorer economies.…”

Section: Review Of Literaturementioning

confidence: 99%

How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Nasreen

Mahalik

Shahbaz

et al. 2020

Research in International Business and Finance

View full text Add to dashboard Cite

This paper examines the role of financial globalization, institutions and economic growth on the development of financial sector in European countries. We use panel data covering the period of 1989-2016. Using the composite index of financial development covers various dimensions of financial market, that is, depth, access and efficiency and four-way classification of institutions as suggested by Rodrick (2005) and Law et al. (2018), the empirical results indicate that economic growth and institutional quality are positively associated with financial development. Contrarily, financial globalization hinders the process of financial sector development. The results are robust to using alternative proxies of economic growth, institutional indicators and capturing the period of financial crisis. These empirical findings suggest policy guidelines to develop financial sector by using globalization, institutional quality and economic growth as economic tools.

show abstract

“…indicates that globalization has the usual upward tendency of enhancing financial development in developing economies through institutional reforms as recognized in the previous literature (Mishkin 2009, Falahaty and Law 2012, Law et al 2015, which would enable the Indian economy to reap the reasonable potential benefits of globalization. Without aligning or synchronizing different policies simultaneously with the globalization parameters, India would not be successful in reaping those full benefits.…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 79%

“…In this regard, Mishkin (2009) in his seminal theoretical paper argues that maintaining greater degree of financial development and the resulting higher economic development are possible, while considering the role of globalization. Following such an argument, little empirical research has evolved in recent times to establish a new branch of research in the applied macroeconomics literature (Falahaty andLaw 2012, Law et al 2015). In this context, the present study attempts to examine the role of globalization in terms of its influence on financial development in India by endogenising other crucial factors, such as economic growth, institutional quality, population density and inflation.…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 99%

Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies

et al. 2017

View full text Add to dashboard Cite

This study attempts to explore the relationship between globalization and financial development by endogenising economic growth, population density, inflation and institutional quality for India during the period from 1971-2013. Using the more conclusive Bayer-Hanck (2013) combined cointegration method, the study provides evidence of cointegration among these variables. The long run and short run estimates from the ARDL model and causality tests respectively suggest that globalization in its all forms (political, social and economic) and its overall measure as well as inflation are detrimental to financial development, while economic growth and population density both promote financial development. Further, the results also point out that institutional quality is not conducive to financial development in India, and there exists a feedback effect between financial development and inflation. Moreover, financial development is influenced by economic growth, institutional quality and population density.JEL Classifications: F00, F36, C22

show abstract

The Effect of Globalization on Financial Development in the MENA Region

Cited by 35 publications

References 18 publications

The Impact of Financial Inclusion on Economic Growth, Poverty, Income Inequality, and Financial Stability in Asia

The Impact of Financial Inclusion on Economic Growth, Poverty, Income Inequality, and Financial Stability in Asia

How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies

Contact Info

Product

Resources

About