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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
01 Jan 2018
TL;DR: In this article, the authors examined the relationship between financial development, remittances inflow and economic growth for South Asian countries and found evidence of bi-directional causality between inflows of foreign remittance and financial sector development.
Abstract: Objective : this research aims to examine the relationship between financial development, remittances inflow and economic growth for South Asian countries. This study also aims to explore how the financial development of selected Asian countries is influenced by worker’s remittances in short and long run periods. Methodology : we construct index of financial development using eight indicators of banking, insurance and stock markets. We use panel data for all the countries of South Asian region from 1988-2013. Results : our findings highlight that remittances inflows and economic growth have a positive and significant impact on financial development in long run. We also find evidence of bi-directional causality between inflows of foreign remittances and financial sector development. Contribution: this study attempts in contributing towards existing literature while determining the role of worker’s remittances and economic growth on the financial development of South Asian countries.

2 citations

Posted Content
TL;DR: In 2008, the world experienced the most severe financial and economic crisis since the Great Depression as mentioned in this paper, which is attributed to a variety of factors, such as developments in the subprime mortgage sector, excessive leverage, lax financial regulation and supervision, and global macroeconomic imbalances.
Abstract: i»?In 2008–09 the world experienced the most severe financial and economic crisis since the Great Depression. The global financial crisis is attributed to a variety of factors, such as developments in the subprime mortgage sector, excessive leverage, lax financial regulation and supervision, and global macroeconomic imbalances. At a fundamental level, however, the crisis also reflects the effects of a long period of excessively loose monetary policy in the major advanced economies during the early part of this past decade. The global financial crisis has led to a new wave of thinking on all issues related to both monetary policy and financial regulation. The practice of both monetary policy and financial regulation had tended to become too formula bound and hence predictable. While these new principles are being debated, it is important to realize that in the face of unexpected developments that always arise in the financial sector, there is an important role for the exercise of judgment by both monetary authorities and financial regulators. Whereas considerable progress has been achieved on the principles governing this regulatory overhaul, very significant challenges remain on the implementation issues that will arise as a new regime takes hold globally.

2 citations

Journal ArticleDOI
TL;DR: In this article, the authors focus on the relationship between financial sector development and debt in the Asia-Pacific region and highlight the importance of this region in powering future world economic growth.

2 citations

01 Jan 2003
TL;DR: Wang et al. as mentioned in this paper investigated the relationship between financial sector development and economic growth for China using Grange causality tests and econometric analysis based on Cobb-Douglas production function type equation.
Abstract: This article investigates the relationship between financial sector development and economic growth for China using Grange causality tests and econometric analysis based on CobbDouglas production function type equation The results from the Grange causality tests indicate that there is a twoway relationship between financial sector development and economic growth The results from regression model further reinforce the findings of the causality analysis The conclusion is consistent with the fact the China is developing from lessdeveloped country to developed country, it also supports the supplyleading and demandfollowing hypothesis

2 citations

Posted Content
TL;DR: In this paper, the authors examined the nexus between financial sector development and economic growth in Nigeria and found that there is a relationship between the financial sector and economic development, indicating that a growth in financial sector will cause the same in the economy.
Abstract: This research examined the nexus between financial sector development and economic growth in Nigeria. The study employed credit to private sector, total bank deposit, prime lending rate, market capitalization, money market instruments as proxy to measure financial sector development, while GDP was used to capture economic growth, using annual data from 1981 to 2016. All the variables were stationary at first difference using the Augmented Dickey Fuller (ADF) and Phillip Perron (PP) tests. The Johansen Cointegration test result showed that a long-run relationship between financial sector development and economic growth existed. The research shows that out of the five proxies for financial sector development, four exhibited significant relationship with economic growth. These findings therefore imply that a relationship exists between financial sector development and economic growth, indicating that a growth in the financial sector will cause same in the economy. Finally, the study recommends that the government formulate policies that will enhance credit to the private sector, such as not operating the Treasury Single Account (TSA) Policy in a holistic manner, so that banks will have fund to propel their credit delivery function effectively; considering the fact that the public sector drives the Nigerian economy as it stands now. However for capital market development, investors’ protection policies should be enhanced in order to strengthen and improve public confidence in the capital market, such as reducing charges for the purchase and sale of securities and reduction of listing requirements for new companies on the exchange.

2 citations


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