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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: This article examined whether China has benefited more from financial development than other countries and found that financial development has less significant for growth in China than in other countries, even when China is compared with other transition economies.
Abstract: We examine whether China has benefited more from financial development than other countries. The results show that financial development has been less significant for growth in China than in other countries, even when China is compared with other transition economies.

6 citations

Posted Content
TL;DR: In this paper, the authors used the information contained in enterprise surveys performed in 16 Latin American and Caribbean countries, covering more than 10,000 firms, to identify some of the underlying factors that are driving Latin America's lackluster growth performance.
Abstract: This book aims to fill that gap by using extensive and new firm-level data. It provides an alternative, albeit complementary, approach to previous studies of the determinants of the region's growth performance, which are mostly based on cross-country regressions using aggregate data. This book uses the information contained in enterprise surveys performed in 16 Latin American and Caribbean countries, covering more than 10,000 firms. These data are complemented with information from household surveys, as well as from enterprise surveys performed in other regions of the world. The analysis in this volume covers topics that have also been stressed by other authors, such as the need to make progress in the areas of financial sector development, export promotion, and innovation policy. The book's contribution in this regard is to inform the corresponding policy debates with evidence on the effect of different policy environments on firm performance. Overall this book will contribute to identifying some of the underlying factors that are driving Latin America's lackluster growth performance. In particular, objective is to improve our understanding of the policies that could have a larger influence on increasing growth and productivity in the region, by means of improving the environment in which firms invest and operate.

6 citations

Book
01 Jan 2010
TL;DR: Quintyn et al. as discussed by the authors presented a taxonomy of finance in sub-Saharan Africa with a focus on the finance-growth nexus and the role of institutions in the development process.
Abstract: List of Tables of Figures Notes on Contributors Foreword L.Lipschitz Introduction and Overview M.Quintyn & G.Verdier PART I: FINANCE IN AFRICA - DEVELOPMENTS, DIAGNOSIS AND DETERMINANTS The Finance-Growth Nexus: Theory, Evidence and Implications for Africa S.Haber Finance in Africa: A Diagnosis P.Honohan Developing a Sound Banking System L.Kasekende Financial Deepening in the CFA Franc Zone: Role of Institutions D.Ghura, R.J.Singh & R.Kpodar From Informal Finance to Formal Finance Lessons from Linkage Efforts E.Aryeetey & A.Pokuaa Fenny Stock Markets in Africa L.Senbet & I.Otchere PART II: FINANCE IN AFRICA - POLICY ISSUES AND CASE STUDIES Regulatory Frameworks in Sub-Saharan Africa: Ensuring Efficiency and Soundness I.Lukonga & S.Kal Wajid Building Supervisory Structures in Africa An Analytical Framework M.Quintyn & M.Taylor Regional Financial Integration as an Engine for Financial Development J.Wakeman-Linn & S.Wagh Access to Finance in Africa Consolidating the Positive Trends J.Isern, E.Lahaye & A.Linthorst Developing Credit Reporting in Africa: Opportunities and Challenges N.Mylenko Case Study on Microfinance Institutions in Madagascar: Policies for a Viable Sector E.Andrianasolo Financial Sector Development Program: the Case of Rwanda C.Rusagara Notes Bibliography Index

6 citations

DissertationDOI
01 Jan 2018
TL;DR: In this paper, the authors investigated the long-term effect of financial development on economic growth and found that financial sector development per se has the capacity of exerting a significantly positive impact on domestic economic growth, but little evidence of any significant effect of democracy on growth is observed.
Abstract: This thesis attempts to provide empirical evidence for the hotly debated relationship between financial development and economic performance using a variety of time series and panel data methods. Also, it extends the previous finance-growth literature by examining the role of democracy in the process. Three inter-related studies form the work undertaken. Chapter 2: In the first of these the impact of financial development on growth is investigated for the case of China using a range of time-series techniques. The results from this work - which spans almost five decades from 1952 - uncover a bi-directional causality between the country’s output performance and its financial development. Meanwhile, domestic financial development failed to promote China’s long-term economic performance over the period under investigation. These findings are inconsistent with the previous studies of Hao (2006) and Liang and Teng (2006). Here, the failure of financial development to stimulating the long-term growth is attributed to the issues of majority government ownership and the high volume of non-performing loans in the domestic financial system. Chapter 3: The relationship between domestic financial development and economic growth has been on the agenda of growth economics for a long time. Notwithstanding its hypothesized benefits certain studies have uncovered evidence of the detrimental effect of domestic financial development for the long-term growth prospects. Such findings highlighted the importance of institutional conditions of financial development. With a panel of 171 countries worldwide over the period 1960 to 2014, this study presents an examination of the question of whether the existence of sound democratic institutions is necessary for financial development to stimulate economic growth in these countries. The baseline results show that financial sector development per se has the capacity of exerting a significantly positive impact on domestic economic growth. However, little evidence of any significant effect of democracy on growth is observed. Meanwhile, the results suggest that the positive effect of financial development on economic growth does not require the condition of the existence of democratic institutions. The study conjectures that, for policymakers, improving the domestic financial system can contribute growth, even in the absence of sound democratic institutions. Chapter 4: This research provides a re-examination of the long-term effect of financial development on economic growth using annual data for 67 countries from 1971 to 2007. Autoregressive distributed lag (ARDL) and cross-sectionally augmented autoregressive distributed lag (CS-ARDL) models have been applied to confront cross-country heterogeneity and error cross-country dependence. A positive and significant effect of financial development on the long-run per capita output is observed. Typically, such a beneficial impact is largely driven by nondemocratic countries. Also, some evidence of a nonlinear effect of financial development is revealed in this study.

6 citations

Posted Content
TL;DR: In this paper, the authors argue that rapid, successful economic reform requires putting the shell game to an end, and they review several contentious issues of financial reform in the TSEs, especially issues involving macrofinance, corporate finance, internal debt problems, and the need to build efficient banks.
Abstract: In the late 1980s, transitional socialist economies (TSEs) in Central and Eastern Europe were only somewhat more sophisticated than shell money systems: savings books or currency had to be used for most transactions and there was no risk assessment, information monitoring and acquisition, or portfolio management. The TSEs have moved toward a two-tiered banking system but they lag in the development of competitive, market-based financial systems. In several TSEs the financial system seems to be part of a shell game to hide the losses of the real economy. The authors argue that rapid, successful economic reform requires putting the shell game to an end. They review several contentious issues of financial reform in the TSEs, especially issues involving macrofinance, corporate finance, the internal debt problems, and the need to build efficient banks. The authors contend that the banks should be"cleaned up"when they are privatized, to prevent the quick reemergence of debt problems. They believe that either of the proposed alternatives for shaping financial systems in the TSEs - very highly capitalized banking or narrow banking - would minimize the need for future support. Either alternative would reduce leverage in the TSEs and provide more financial stability. But taking concerns about moral hazard to an extreme - prohibiting debt finance - could starve new firms for credit and limit economic growth.

6 citations


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