The Impact of Financial Openness on Financial Development, Growth and Volatility in Turkey: Evidence From the Ardl Bounds Tests

Ersoy, İmre

doi:10.1080/1331677x.2011.11517466

Cited by 13 publications

(9 citation statements)

References 24 publications

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“…Moreover, the maximum eigenvalue (95.84860) is higher than the critical value (46.23142) at 5% as well. These results are supported by (Ajie et al, 2019;Dinh et al, 2019;Egbetunde and Akinlo, 2015;Ersoy, 2011;and Klasra, 2011).…”

Section: Johansen Co-integrationsupporting

confidence: 71%

The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)

Alaa¹,

Ashraf²,

Elsherif³

2021

IJEFI

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Many developments had occurred in the global economy. Among these developments is the increase of capital flows across countries. Foreign direct investment (FDI) is considered to be one of the cross border capital flows that countries use in order to enhance their economic growth. This study focuses on how FDI impacts the economic growth of Egypt for a period from 1980 to 2018. The study applies Johansen co-integration, Vector Error Correction Model (VECM) and Ganger causality in the methodology. Johansen co-integration results show that a long run relationship exists among the variables. In addition, VECM shows that FDI exerts a positive significant impact on the economic growth of Egypt. Finally, a bidirectional causality between FDI and the economic growth of Egypt is shown by Granger causality.

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Section: Johansen Co-integrationsupporting

confidence: 71%

The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)

Alaa¹,

Ashraf²,

Elsherif³

2021

IJEFI

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“…The findings of the current study are also consistent with the findings by Tongurai and Vithessonthi (2023), Umutlu et al (2020), Ersoy (2011) and Zhang et al (2015) who also found a positive relationship between financial openness and financial development. Trade openness, real gross domestic product, real interest rate and government expenditure were all statistically significant at 1% alpha level with the exception of inflation that is significant at 5% alpha level.…”

Section: Long-run Results (Fsdi Is the Dependent Variable)supporting

confidence: 93%

“…Ersoy (2011) investigated the impact of financial openness on financial development, growth and volatility in Turkey: evidence from the ARDL bounds tests. The bounds test results indicate that financial openness is in a long-run equilibrium relationship with financial development, growth and output volatility in Turkey.…”

Section: Review Of Related Literaturementioning

confidence: 99%

Role of financial openness in Ghana’s financial sector development episode

Eduboah

2024

JFEP

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Purpose This paper aims to reexamine the relationship between financial openness and financial development in Ghana. Design/methodology/approach The study applied maximum likelihood estimation and autoregressive distributed lag approach and tested Granger causality using quarterly data from 1990:1 to 2020:4. Findings This study revealed a long-run equilibrium relationship between financial openness and development, indicating that financial openness is a critical factor in Ghana’s financial development. Therefore, the study recommends with caution that policies aimed at promoting financial openness could be an effective way to encourage sustainable financial development in Ghana, as financial openness alone may not bring the desired outcome. Research limitations/implications The study contributes to the existing body of knowledge by providing empirical evidence of the link between financial openness and financial sector development in Ghana. Future research could delve deeper into the mechanisms through which financial openness affects financial development, exploring potential channels and transmission mechanisms. Practical implications The findings suggest that policymakers, particularly the Ministry of Finance and the Bank of Ghana, should prioritize policies aimed at promoting financial openness. This includes continued efforts toward financial liberalization and creating an environment conducive to domestic and international financial transactions. Moreover, policies aimed at increasing trade openness, boosting real GDP and maintaining moderate real interest rates are essential for fostering financial sector development. Social implications Enhancing financial sector development can have significant implications for society, including increased access to financial services, improved economic opportunities and enhanced overall economic stability. By promoting financial openness and development, policymakers would contribute to poverty reduction, job creation and overall socio-economic development. The study bridges the gap between theory and practice by providing empirical evidence supporting the theoretical proposition that financial openness stimulates financial sector development. Originality/value This study fills a crucial gap in the literature on the effects of financial openness on Ghana’s financial sector development. It focuses on Ghana, which liberalized its financial sector in 1988 as part of the overall economic reforms in 1983, and this justifies the starting point of this paper in 1990, as there are no adequate data before 1990. The study uses principal component analysis to construct an index that measures financial development. The study considers the recent financial crises in Ghana in 2017 and underscores the importance of understanding the link between financial openness and financial development, which becomes useful for policymakers and researchers studying financial system development in sub-Saharan Africa which includes Ghana.

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“…To control and check the ARDL specification, the empirical sources such as Feridun et al . (), Acaravci (), Feridun (), Yazici and Islam (), Ersoy (), Erdem and Tugcu (), Bildirici and Kayikci (), Insel and Kayikci (), Tang (), Joader et al . () were analysed in deep.…”

Section: Methodsmentioning

confidence: 99%

Staying vigilant of uncertainty to velocity of money: an application for oil‐producing countries

Şahin

2018

OPEC Energy Review

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Uncertainty in economic and financial variables has substantially changed the dynamics in monetary economics during the last two decades in oil‐producing countries. However, there are types of uncertainties which affect these countries heterogeneously in the short run and long run. For this purpose, Autoregressive Distributed Lag Model (ARDL) is estimated for oil‐producing countries and non‐homogenous results for money supply, income, oil, interest rate, US monetary policy and exchange uncertainties have been obtained.

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The Impact of Financial Openness on Financial Development, Growth and Volatility in Turkey: Evidence From the Ardl Bounds Tests

Cited by 13 publications

References 24 publications

The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)

The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)

Role of financial openness in Ghana’s financial sector development episode

Staying vigilant of uncertainty to velocity of money: an application for oil‐producing countries

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