The Missing-Link between Financial Development and Economic Growth: Financial Innovation

Mollaahmetoğlu, Ebubekir; Akçalı, Burçay Yaşar

doi:10.1016/j.procs.2019.09.105

Cited by 40 publications

(20 citation statements)

References 21 publications

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“…Therefore, the authors state the need for establishing the relationship between financial development and firm investment and innovative endeavours. Moreover, Mollaahmetoğlu and Akçalı (2019) introduce the concept of financial innovation for which four components have been identified, namely financial depth, financial efficiency, financial stability and financial access. In this sense, Pellegrino and Savona (2017) focus on the financial access and attempt to understand the connection between "financing constraints and R&D investment".…”

Section: Firm Investment As Indicator To Measure Innovationmentioning

confidence: 99%

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

Onea

2020

Management &Amp; Marketing. Challenges for the Knowledge Society

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The purpose of this paper is to determine the influence of specific innovation indicators on the overall innovation process. In this sense, a quantitative methodological approach has been employed and data has been analysed using IBM SPSS version 24. Innovation is one the themes of considerable interest at worldwide and at European level, this being reflected by the 2020 European innovation indicator. Innovation is considered to generate economic growth and create competitive advantage for both large organizations and small and medium enterprises, thus being examined as a factor that influences overall business efficiency. In this sense, the data used for this research contains the information published in the European Innovation Indicator Scoreboard 2020 database. In this regard, two innovation indicators have been considered for analysis, namely firm investments and employment impact. An exploratory factor and correlation analysis have been performed in SPSS in order to provide an answer to the research question: “How do firm investments and employment impacts influence the overall Summary Innovation Index?”. The findings show that there is a positive correlation between the selected innovation indicators, namely firm investments and employment impact and the overall summary innovation index. These findings reveal a strong correlation between firm investments and the innovation process, which results into guidance for companies and their innovative efforts. In this sense, this paper further provides recommendations for firms on where to channel and focus their efforts in order to create more innovative products and activities.

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Section: Firm Investment As Indicator To Measure Innovationmentioning

confidence: 99%

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

Onea

2020

Management &Amp; Marketing. Challenges for the Knowledge Society

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“…As pointed out in Section 1, the majority of the extant studies predominantly focus on the relationship between gross domestic product (GDP) growth and financial development (see, for example, Zhu et al, 2020;Mollaahmetoglu and Akcair, 2019;Sotiropoulou et al, 2019;Botev, 2019;Chu, 2019;Batuo et al, 2018;Ho and Iyke, 2018;Ranjbar and Rassekh, 2017;Dilek et al, 2017;Creel et al, 2015;Samargandi et al, 2014;Adu et al, 2013;Khan et al, 2005;Ibrahim and Alagidede, 2018;Madsen et al, 2018;Ono, 2017;Yang and Yi, 2008;Khan et al, 2001). Furthermore, studies that have considered the impact of financial stability on economic growth mostly focus on developed countries (see, for example, Alsamara et al, 2019;Duprey et al, 2017;Aboura andvan Roye, 2017, Creel et al, 2015;Klemkosky, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Stability and Income Growth in Emerging Markets

Mande¹,

Salisu

Jimoh³

et al. 2020

BEMP

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In this paper, we examine the extent to which financial stability matters for income growth in emerging markets. Using dynamic panel estimation techniques, we explore both the stock market and banking sector dimensions of the financial system to show that both stock market volatility and non-performing loans are detrimental to income growth in these markets. We, however, find the magnitude of the impact to be relatively more pronounced when the underlying source of instability in the financial system is stock market volatility. Overall, we find the impact of financial stability on income growth to be more statistically relevant when measured using the individual indicators of financial instability as compared to their composite indicator.

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“…There has been increasing empirical efforts supporting the hypothesis that the development of finance induces a better allocation of resources, mobilizes savings, and can reduce risks and facilitate transaction, which in turn promote economic growth (see for example, Zhu et al, 2020;Mollaahmetoglu & Akcair, 2019;Botev et al, 2019;Chu, 2019;Batuo et al, 2018;Ranjbar & Rassekh, 2017;Creel et al, 2015;Seven & Yetkiner, 2015;Samargandi et al, 2014;Adu et al, 2013;Odeniran &Udeaja, 2010;Khan et al, 2005;Ibrahim & Alagidede, 2018;Madsen et al, 2018;Ono, 2017;Yang & Yi, 2008). However, in addition to some scepticism that the link between finance and economic growth has been exaggerated (Rodrik & Subramanian, 2009;Stiglitz, 2000;De Gregorio & Guidotti, 1995), the vast of the extant studies has continued to assume financial stability interchangeably with financial development even though both means different things.…”

Section: Brief Literature Review Of Related Studiesmentioning

confidence: 99%

“…This has been attributed to notable efforts on the emerging economies over the past one-and-a-half decades to reform their financial system. Thus, quite a number of the extant literature on income growth-financial stability nexus has continues to affirm the widespread assumption that a positive relationship exists between income growth and financial stability (see for example, Zhu et al, 2020;Chu, 2019;Sotiropoulou et al, 2019;Alsamara et al, 2019;Mollaahmetoglu & Akcair, 2019;Batuo et al, 2018;Ranjbar & Rassekh, 2017;Seven & Yetkiner, 2015;Creel et al, 2015;Samargandi et al, 2014;Adu et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Income Growth-Financial Stability Nexus: The Role of Institutional Quality in Emerging Economies

2021

RJFA

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Motivated by the mixed evidence on growth-finance nexus, we explore the case of 23 emerging countries to offer robust insight on the extent to which financial stability(instability) induce or impede income growth. Exploring a dynamic panel estimation technique using system GMM estimator, we find both the banking segment of the financial system captured as non-performing loan and the non-banking segment measured via stock market volatility as viable underlying sources of financial instability causing declining income growth in emerging markets. Quite an interesting finding, however, is the potential of institutional quality as viable for alleviating the probable adverse effects of financial instability on income growth, particularly via corruption control, political stability, and voice of accountability.

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The Missing-Link between Financial Development and Economic Growth: Financial Innovation

Cited by 40 publications

References 21 publications

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

Financial Stability and Income Growth in Emerging Markets

Income Growth-Financial Stability Nexus: The Role of Institutional Quality in Emerging Economies

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