Topic
Financial sector development
About: Financial sector development is a research topic. Over the lifetime, 1674 publications have been published within this topic receiving 90787 citations.
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TL;DR: In this article, the authors find a bi-directional causal relationship between the liberalization of financial sector and level of financial development in Nepal and find that an efficient financial system can effectively mobilize and allocate resources leading to robust economic growth.
Abstract: An efficient financial system can effectively mobilize and allocate resources leading to robust economic growth. Financial liberalization improves the functioning of financial system by increasing the availability of funds and allowing risk diversification and increased investment. The indices of financial liberalization and financial development, generated by the principal component analysis, depict a gradual process of financial liberalization and a continuous financial sector development. The paper finds the presence of bi-directional causal relationship between the liberalization of financial sector and level of financial development in Nepal.
21 citations
TL;DR: In this paper, the role of financial markets in the relationship between foreign direct investment and economic development is examined, and it is shown that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
Abstract: This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
21 citations
01 Dec 2006
21 citations
TL;DR: Wang et al. as mentioned in this paper constructed a financial development index for China and analyzed the relationship between the financial sector development index and economic growth through rolling window regression method, and the results of Johansen-Juselius cointegration approach confirm long run relationship between financial development indices and economic development.
Abstract: Purpose – The purpose of this paper is to construct a financial development index for China and to analyze the relationship between the financial sector development index and economic growth.Design/methodology/approach – This study uses Johansen‐Juselius cointegration approach to determine long run relationship between variables. To determine the strength of causal relationship variance decomposition is used. The stability of coefficient is evaluated through rolling window regression method.Findings – The results of Johansen‐Juselius cointegration approach confirm long run relationship between financial development index and economic growth. Normalized cointegrating vector indicates that financial development index, real interest rate, capital and labor force positively determine economic growth in China. The yearly coefficient is provided by the rolling regression and indicates that financial development index negatively link to economic growth in 1991, 1992, 1994, 1995, 1999, 2000, 2003‐2005. Interest r...
21 citations
Posted Content•
TL;DR: In this article, the authors reviewed the e-finance (r)evolution in emerging, and other markets, and projected its future growth, and analyzed e-financing impact on the structure of, and competition in the financial services industry.
Abstract: In recent years, electronic finance, especially online banking, and brokerage services, has reshaped the financial landscape. This paper reviews these developments, and analyzes their implications for consumers, governments, and financial service providers. First, it reviews the e-finance (r)evolution in emerging, and other markets, and projects its future growth. It then analyzes e-finance impact on the structure of, and competition in the financial services industry. After that, it assesses how e-finance, and globalization more generally, affects financial sector policies in emerging markets, including the need for changes in the approach to financial sector development. The paper then examines governments' changing role in the financial sector, and identifies opportunities that e-finance offers countries to leapfrog. Finally, the paper includes for policymakers, and others involved in financial sector reform in emerging markets, detailed information, and Web links on public policy activities related to e-finance.
21 citations