Open AccessJournal Article
Financial intermediation and economic growth
Bogdan Dima,Petru Eugen Opriș +1 more
Reads0
Chats0
TLDR
In this paper, the relationship between financial intermediation and the economic growth in the developing economic systems is evaluated, using dataset from 28 countries, between 2001 and 2010, and the result confirms in general a high correlation degree between the indicators.Abstract:
The paper evaluates the relationship between financial intermediation and the economic growth in the developing economic systems. First, using dataset from 28 countries,between 2001 and 2010 we define a financial intermediation indicator applying EFA method. We use several dimensions of the financial intermediation: Domestic credit provided by banking sector (% of GDP); Domestic credit to private sector (% of GDP); Broad money (% of GDP); Market capitalization of listed companies (% of GDP). As a preliminary step, using Spearman rank-order co-variance analysis we test the correlation between variables and the result confirms in general a high correlation degree between the indicators. Secondly, we compare this financial intermediation indicator with some dimension of economic growth using three different methods, OLS (Ordinary Less Square), GLM (Generalized Linear Model) and QR (Quantile Regression), in order to check the robustness of the model. The result suggests that the financial intermediation as part of financial development is positively associated with economic growth.read more
Citations
More filters
Journal Article
Financial development and economic growth
TL;DR: Šonje et al. as mentioned in this paper 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.
Journal ArticleDOI
Private capital flows and economic growth in Africa: The role of domestic financial markets
TL;DR: In this paper, the authors examined the relationship between private capital flows and economic growth in Africa during the period 1990-2007 and found that foreign direct investment, foreign equity portfolio investment and private debt flows all have a negative impact on economic growth.
Book ChapterDOI
Financial Development, Bank Efficiency and Economic Growth across the Mediterranean
TL;DR: This paper examined the relationship between FD and economic growth in the SEMC and the EU-MED in 1985-2009 using several variables, taking into account the effects of both quantity and quality.
Journal ArticleDOI
Financial innovation and economic growth in Bangladesh
TL;DR: In this article, the authors provided evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016 by applying Autoregressive Distributed Lag (ARDL) bound testing and Granger causality-based error correction model (ECM) to capture the directional association.
Journal ArticleDOI
Financial Development and Economic Growth in Africa
TL;DR: In this article, the authors revisited the debate between financial development and economic growth and found that portfolio flows and Foreign Direct Investment (FDI) have consistently positive effects on economic growth under endogenous stock market capitalization.
References
More filters
Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Book
Theory of Economic Development
TL;DR: The theory of economic development was first published in 1911 by Schumpeter as discussed by the authors, who argued that economics is a natural self-regulating mechanism when undisturbed by "social and other meddlers." In his preface he argues that despite weaknesses, theories are based on logic and provide structure for understanding fact.
Book
Money and capital in economic development
TL;DR: In this paper, the authors present a theory of economic development very different from the "stages of growth" hypothesis or strategies emphasizing foreign aid, trade, or regional association, focusing on the use of domestic capital markets to stimulate economic performance.
Posted Content
Financial Intermediation and Growth: Causality and Causes
TL;DR: In this article, the authors evaluate whether the level of development of financial intermediaries exerts a casual influence on economic growth, and they find that financial intermediary development has a large causal impact on growth.
Journal ArticleDOI
Financial intermediation and growth: Causality and causes ☆
TL;DR: In this article, the authors evaluate whether the level of development of financial intermediaries exerts a casual influence on economic growth and whether cross-country differences in legal and accounting systems (such as creditor rights, contract enforcement, and accounting standards) explain differences in financial development.