Wei Jianguo

Bio: Wei Jianguo is an academic researcher from Wuhan University of Technology. The author has contributed to research in topics: Financial innovation & Granger causality. The author has an hindex of 9, co-authored 26 publications receiving 257 citations. Previous affiliations of Wei Jianguo include United International University.

Financial innovation and economic growth in Bangladesh

Abstract: This study provides evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016. To capture the influence of financial innovation on economic growth, we estimated the long-run cointegration by applying Autoregressive Distributed Lag (ARDL) bound testing and Granger causality-based Error Correction Model (ECM) to capture the directional association. The Test of Cointegration satisfied the existence of a long-run association between economic growth and the financial innovation proxies, which were the Domestic Credit to the Private Sector (DCB) as a percentage of the Gross Domestic Product and the Broad-to-Narrow Money (M2/M1) as a percentage of the Gross Domestic Product. Our results showed that in the long run, credit circulation to the private sector and monetary management play important roles in economic growth. We also found that the coefficients of the financial innovation proxy variables were positive and statistically significant both in the short run and long run. We also ran Granger causality tests to investigate the directional effect. This study confirmed the feedback causality between the economic growth and 2 proxies of financial innovation in the short and long run. The gross capital formation and trade openness contribute significantly to explaining the economic growth in Bangladesh. The government of Bangladesh should encourage financial innovation in the financial system, especially at financial institutions, so that access to financial services can easily provide for equitable development. The government should also encourage financial innovation in the capital market, which will assist in raising long-term capital for investment and expedite overall economic growth.

Nexus between financial innovation and economic growth in South Asia: evidence from ARDL and nonlinear ARDL approaches

Abstract: This study examined the relationship between financial innovation and economic growth in Bangladesh, India, Pakistan, and Sri Lanka for the period Q1 1975 to Q4 2016 The autoregressive distributed lag (ARDL) bounds test was used to gauge long-run relationships, and the nonlinear ARDL (NARDL) test was used to explore asymmetry between financial innovation and economic growth in the sample of Asian countries The findings from the bounds tests revealed long-run cointegration between financial innovation and economic growth in the sample countries Furthermore, NARDL confirmed that positive changes in financial innovation linked positively with economic growth and vice versa in the long run In the short run, however, the study found mixed behaviors in the case of positive and negative changes in financial innovation To investigate directional causality, the Granger causality test under an error correction model was employed The Granger causality results supported the feedback hypothesis in both the long run and short run Thus, financial innovation boosts economic growth in the long run by stimulating financial service expansion, financial efficiency, capital accumulation, and efficient financial intermediation, which are essential for sustainable economic growth

Investigation of the asymmetric relationship between financial innovation, banking sector development, and economic growth

Abstract: With this study, we try to explore new insights about the existence of an asymmetric relationship between financial innovation, banking sector development, and economic growth of Asian countries for the period of 1974Q1 to 2016Q4. In this study, we apply Autoregressive Distributed Lag (ARDL) bound testing to capture long-run association and nonlinear Autoregressive Distributed Lagged (NARDL) to capture the existence of an asymmetric relationship between studied variables. ARDL-bound testing confirms long-run cointegration and nonlinear ARDL confirms the existence of an asymmetric relationship between financial innovation, banking sector development and economic growth of Asian countries. For a directional relationship, we perform Granger-causality under error correction model. Study support feedback hypothesis between financial innovation and economic growth and banking sector development and economic growth both in short and long run. The study suggests, the government should encourage financial innovation in the financial system through technological advancement and institutional integration and formulated economic policy favor of banking sector development by allowing institutional development, enterprise risk management and encouraging healthy competition in the financial system.

SME financing innovation and SME development in Bangladesh: an application of ARDL

Abstract: With this study, we try to explore new evidence about financial innovation in small and medium enterprises (SME) financing impact on SME development in Bangladesh from 1985 to 2016. To bring insigh...

Financial development and economic growth

Abstract: relationship. All subsequent studies confirmed it (see for example King and Levine, 1993, and the review in: Pagano, 1993). Goldsmith used a sample of 35 countries for the period between 1860 and 1963 to show the relationship between income and financial depth measured by the ratio between bank's assets and GDP. He also showed that in periods of rapid growth, financial depth grows faster than income. More details about measuring financial depth can be found in this paper. FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH Velimir Šonje

Likelihood Based Inference In Cointegrated Vector Autoregressive Models

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