Journal ArticleDOI
Introducing a New Broad-based Index of Financial Development
Reads0
Chats0
TLDR
In this paper, the authors created nine indices that summarize how developed financial institutions and financial markets are in terms of their depth, access, and efficiency, aggregated into an overall index of financial development.Abstract:
There is a vast body of literature estimating the impact of financial development on economic growth, inequality, and economic stability. A typical empirical study approximates financial development with either one of two measures of financial depth – the ratio of private credit to GDP or stock market capitalization to GDP. However, these indicators do not take into account the complex multidimensional nature of financial development. The contribution of this paper is to create nine indices that summarize how developed financial institutions and financial markets are in terms of their depth, access, and efficiency. These indices are then aggregated into an overall index of financial development. With the coverage of 183 countries on annual frequency between 1980 and 2013, the database should offer a useful analytical tool for researchers and policy makers.read more
Citations
More filters
Journal ArticleDOI
Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: Does globalization matter?
Muhammad Awais Baloch,Ilhan Ozturk,Ilhan Ozturk,Ilhan Ozturk,Festus Victor Bekun,Danish Khan +5 more
TL;DR: In this article, the authors examined the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990-2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries.
Journal ArticleDOI
Fintech, financial inclusion and income inequality: a quantile regression approach
TL;DR: Although theory suggests that financial market imperfections, such as information asymmetries, market segmentation and transaction costs, prevent poor people from escaping poverty by limiting the ability to escape poverty as discussed by the authors.
Journal ArticleDOI
How green technology innovation affects carbon emission efficiency: evidence from developed countries proposing carbon neutrality targets
TL;DR: A policy basis for developed countries to mitigate carbon emissions and achieve carbon neutrality goals as soon as possible is provided and theoretical support that will assist developed countries in achieving their carbon neutrality targets is provided.
Journal ArticleDOI
Financial development and environmental degradation: Do human capital and institutional quality make a difference?
TL;DR: In this paper , the authors explored the effect of financial development, human capital, and institutional quality on the ecological footprint in emerging countries and investigated the role of institutional quality in the financial development-EF nexus.
Journal ArticleDOI
Understanding the dynamics of resource curse in G7 countries: The role of natural resource rents and the three facets of financial development
TL;DR: In this article, the authors investigated the resource curse hypothesis with a special emphasis on the institutional failure hypothesis and found that the curse is routed through the development of financial markets. But, they also pointed out that there is strong evidence of hemorrhaging in financial institutions led by the abundance and utilization of natural resources.
References
More filters
Posted Content
Financial Dependence and Growth
Raghuram G. Rajan,Luigi Zingales +1 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship: that financial development reduces the costs of external finance to firms, and they found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Book ChapterDOI
Chapter 12 Finance and Growth: Theory and Evidence
TL;DR: The authors reviewed, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth, concluding that both financial intermediaries and markets matter for growth and that reverse causality alone is not driving this relationship.
Journal ArticleDOI
Bank Concentration and Competition: An Evolution in the Making
TL;DR: This paper reviewed the existing literature on the impact of bank concentration and competition on the performance of banks and summarized the main findings of the summarized papers in this special issue of the JMCB within the context of this actively active literature.
Journal ArticleDOI
Finance and Inequality: Theory and Evidence
TL;DR: This article reviewed the literature on finance and inequality, highlighting substantive gaps in the literature and providing a rich set of predictions concerning both the impact of finance on inequality and about the relevant mechanisms.
Journal ArticleDOI
How well do aggregate prudential ratios identify banking system problems
Martin Cihak,Klaus Schaeck +1 more
TL;DR: This paper analyzed the performance of aggregate prudential ratios in systemic banking crises, drawing upon a large cross-country dataset, and found that some of the ratios can help identify systemic banking problems.
Related Papers (5)
Another look at the instrumental variable estimation of error-components models
Manuel Arellano,Olympia Bover +1 more
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more