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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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Journal ArticleDOI
TL;DR: In this article, the authors investigated the relationship between bank, stock market and economic growth in Bangladesh and found that bank's credit to the private sector is both positively and robustly contributing to the economic development of the country when bank credit to private sector entered alone as an independent variable.
Abstract: The paper empirically investigates the relationship between bank, stock market and economic growth in Bangladesh. In investigating empirical relationship, GDP at the current price, private sector credit given by banks and market capitalization are considered as indicators of economic growth, banks' development and stock market development, respectively. Three possible regression models are estimated to know the relationship between economic growth and financial sector development. The paper shows that bank's credit to the private sector is both positively and robustly contributing to the economic development of the country when bank credit to private sector entered alone in regression as an independent variable. Besides long-term relationship, contemporaneous change in bank's credit to the private sector has profound positive short-run feedback effects to the economic growth. In assessing impact of stock market development on economic growth, no significant long-run relationship is found between stock market development and economic growth in Bangladesh. However, net positive subdued short-term effect of stock market development is evident. But when both bank and equity market jointly enter the model to find out the relationship of both variables with economic growth, a long-run relationship has been evident without statistical significance. It indicates that Bangladeshi financial system comprising both banking sector and stock market jointly is not still a strong promoter of its economic growth, although banking development alone is robustly associated with economic development.Bangladesh therefore needs to enhance the efficiency of banks for increasing credit to the private sector. An immediate initiative is also required to make both equity and debt market as regular sources of finance for the economy. In this perspective, ensuring smooth operation of primary and secondary market, increasing financial literacy among investors, minimizing volatility of the market, expanding issuer base, creating both individual and institutional investors, enhancing efficiency of the brokerage house, adding innovative financial services, initiating knowledge based trading, introducing shelf registration system, creating more professional trustee and ensuring authenticate credit rating from the rating agencies are required to be ensured.

13 citations

Posted ContentDOI
TL;DR: In this paper, the authors take stock of the current state of financial inclusion in the Asia-Pacific region by highlighting twelve stylized facts about the state of inclusion in these countries.
Abstract: Financial inclusion is a multidimensional concept and countries have chosen diverse methods of enhancing financial inclusion with varying degrees of results. The heterogeneity of financial inclusion is particularly striking in the Asia-Pacific region as member countries range from those that are at the cutting edge of financial technology to others that are aiming to provide access to basic financial services. The wide disparity is not only inter-country but also intra-country. The focus of this paper is to take stock of the current state of financial inclusion in the Asia-Pacific region by highlighting twelve stylized facts about the state of financial inclusion in these countries. The paper finds that the state of financial inclusion depends on several factors, but a holistic approach calibrated to specific country conditions may lead to greater financial inclusion.

13 citations

Posted Content
TL;DR: In this paper, the authors analyzed the links between multilateral, and unilateral financial liberalization, represented by the General Agreements on Trade in Services (GATS), and found that in many countries multilaterally liberalized financial sector policies are more restrictive than the actual state of openness or development of financial sectors.
Abstract: This paper analyzes the links between multilateral, and unilateral financial liberalization, the former represented by the General Agreements on Trade in Services (GATS). It provides an overview of the main features of the GATS and what the participants in banking and securities within its framework, and compares GATS liberalization with the actual state of liberalization of the participants’ financial sectors. The results suggest that in many countries multilaterally liberalized financial sector policies are more restrictive than the actual state of openness or development of financial sectors. Many emerging markets liberalized little under the GATS despite often well-developed financial markets, while the opposite was true in some less developed developing countries.

13 citations

Posted Content
Stijn Claessens1, Erik Feijen1
TL;DR: In this paper, the authors show that financial sector development significantly reduces undernourishment (hunger), largely through gaining farmers and others access to productivity-enhancing equipment, translating into beneficial income and general effects.
Abstract: Using cross-country and panel regressions, the authors show that financial sector development significantly reduces undernourishment (hunger), largely through gaining farmers and others access to productivity-enhancing equipment, translating into beneficial income and general effects. They show specifically that a deeper financial sector leads to higher agricultural productivity, including higher cereal yields, through increased fertilizer and tractor use. Higher productivity in turn leads to lower undernourishment. The results are robust to various specifications and econometric tests and imply that a 1 percentage point increase in private credit to GDP reduces undernourishment by 0.22-2.45 percentage points, or about one-quarter the impact of GDP per capita.

12 citations

DOI
01 Apr 2020
TL;DR: In this paper, the authors assess the impact of effective factors on the development of renewable energy consumption in Iran with emphasis on the role of foreign direct investment (FDI) and financial sector development (especially stock market development).
Abstract: Concerning environmental pollution issues derived from fossil energy consumption, the application of renewable energies plays an important role in countries, especially in their energy sector policymaking. Since determining the relationship between different variables and renewable energy not only has significant policy applications in energy sector but also is necessary in achieving sustainable development goals, this study assesses the impact of effective factors on the development of renewable energy consumption in Iran with emphasis on the role of foreign direct investment (FDI) and financial sector development (especially stock market development). This study applies Auto-Regressive Distributed Lag (ARDL) bounding test method over the period of 1978-2016. The research findings show that there is a causal relationship between foreign direct investment and the stock market and renewable energy consumption in Iran such that the increase of foreign direct investment and stock market development will increase the consumption of renewable energies in Iran. On the other hand, a growth in renewable energies consumption will significantly reduce CO2 emission in the long run. Besides, increasing FDI and stock market development will raise the economic growth of a country and, in return, increase CO2 emission.

12 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202357
202279
202155
202093
201991
201888