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.

The impact of foreign financial inflows on the economic growth of sub-Saharan African countries: An empirical approach

Abstract: Abstract The impact of foreign financial inflows on the economic growth of recipient countries is a controversial issue in many empirical studies. The majority of the previous studies use one variable as an indicator of foreign financial inflows; they fail to incorporate many variables. The study fills this gap by using remittance inflows, foreign direct investment, official development assistance, and external debt as an indicator of foreign financial inflows. This study investigates the impact of foreign financial inflows on the economic growth of 31 sub-Saharan African countries over the period 2009 to 2019. The study employed a two-step system GMM due to its practical advantage on the dynamic panel data set. The finding shows that only foreign direct investment has a significant and positive contribution to economic growth. Official development assistance and external debt affect economic growth negatively, and they are statistically significant. Remittance inflow affects economic growth negatively, but it is statistically insignificant. The study suggests that policymakers should work on the way that remittance inflow promotes investment and reduce dependency on official development assistance. In addition, external borrowing should be used for productive purposes.

Impact of financial sector development one economic growth of Nigeria

Abstract: This paper investigates the impact of Nigeria's financial sector development on economic growth. In addition, an analysis is carried to ascertain the extent to which the 2008/2009 financial crisis affected the relationship between financial sector development and economic growth in Nigeria. Ordinary Least Square (OLS) technique, with time series data for the period 2004-2012, is employed. Results show that financial sector development has positive and significant impact on economic growth of Nigeria. However, the 2008/2009 financial crisis slightly reduced the positive impact of Nigeria's financial sector development on economic growth. The study concludes with some important policy implications.

Cambodia economic update : Clear skies

Abstract: This issue of the Cambodia economic update covers the following selected issues: 1) making the most of the Cambodian rise sector; and 2) creating opportunities for firms as reflected in findings from the investment climate assessment. For FY2014 economic growth held up well despite domestic uncertainty and instability in neighboring countries. Real growth is estimated to reach 7.2 percent, driven by the garment, construction, and services sectors. Overall macroeconomic management has been good with fiscal consolidation underpinned by improved revenue administration. In 2015 with the expectation of renewed confidence and the return of political stability after ending a yearlong political deadlock in July 2014, bolstered by a strengthening global economy, Cambodia's real growth rate is expected to reach 7.5 percent, similar to that of 2013. The downside risks to the projected robust growth are a potential recurrence of labor unrest, natural disasters, especially the possibility of heavy floods, as well as regional political uncertainty. Concerning rice production, growth decelerated in 2013 highlighting the importance of revitalizing the rice sector so it becomes once again a key engine of GDP growth. While the milled-rice export market is steadily expanding and increasing the number of destination markets, the milling and transport costs of Cambodian rice make it loose the competitiveness it has at farm gate prices. The Royal Government of Cambodia (RGC) has set a very legitimate target of one million tons of milled rice exports that matters tremendously for poverty reduction and shared prosperity. Concerning the investment climate assessment findings, RGC's new five-year Rectangular Strategy III continues to prioritize improving the business environment to help diversify and increase value-added in production. The current period of robust growth represents an opportunity to make improvements to the business environment that will attract long-term investors. Proposed next steps in reforming the business environment include: a) addressing the high cost of electricity; b) automating government processes; c) encouraging new investment, particularly in special economic zones; d) continuing improvements to trade facilitation; e) completing the draft Competition Law; f) designing and implementing a system of incentives for business registration; and g) focusing on implementation and enforcement.

Mozambique - Country program evaluation

Abstract: Since the cessation of conflict, Mozambique has achieved impressive economic growth and has become an example of successful post conflict reconstruction and development, moving from a one-party state to a multiparty democracy and from a socialist, command economy to a market-based economy. Mozambique’s development has been strongly supported by foreign aid, and since 2001 average annual disbursements of official development assistance (ODA) have amounted to over 1 billion dollar, or 12 percent of gross domestic product (GDP). Strong economic growth has contributed to a decline in income poverty, but the level of overall poverty remains high. This country program evaluation (CPE) focuses on the Bank’s program for FY2001-08, examining the following questions: did the Bank correctly assess the problems Mozambique faced?; was the Bank’s strategy appropriate for meeting the country’s development needs?; how effective was Bank assistance in implementing those strategies?; what were the outcomes of the assistance?; and to what extent did the Bank, other development partners, the government, or exogenous forces contribute to outcomes? The CPE is organized as follows: Chapter one assesses Mozambique’s economic and social development and identifies major development priorities and constraints facing the country. Chapter two is an overview of the Bank’s program of lending and analytic and advisory activities (AAA). Chapters three, four, and five cover thematic aspects: stabilization and growth (including infrastructure and agriculture development), poverty reduction and human development, and governance. Chapter six covers International Finance Corporation (IFC) activities in Mozambique, and chapter seven assesses partnership and harmonization. The last chapter contains conclusions, lessons, and recommendations.

The Impact of Economic Growth, Energy, and Financial Sector Development on the Environmental Quality; Evidence from the Developed and Developing Countries

Abstract: ................................................................................................................iii ÖZ ................................................................................................................................ iv ACKNOWLEDGMENT ................................................................................................ v LIST OF TABLES ........................................................................................................ ix LIST OF FIGURES .................................................................................................... xiv