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.

Financial Development and Income Inequality: Evidence From Advanced, Emerging and Developing Economies

Abstract: We investigate the effects of financial development on income inequality for a global sample of countries between 1980 and 2019. The study contributes to the current literature by first, making use of a multifaceted index of financial development that captures different aspects of financial developments over time. Second, we compare the effects of financial development on income inequality across economic classifications, namely advanced, emerging and least developed countries. Last, we investigate the non-linear effects of financial development on income inequality across these economic classifications. The findings indicate that in general, financial development reduces inequality across emerging and least developed countries, but is not statistically significant for advanced countries. However, when we disaggregate the financial development index into its sub-components (financial institutions and financial markets), we find different effects on inequality, based on the levels of development. Further investigation on the dimensions under financial institutions and financial markets (depth, access and efficiency) reveals that banking sector development under financial institutions has income inequality-reducing effects in emerging and least developed countries, while stock market development under financial markets widens inequality in least developed countries. We also find heterogeneous non-linear effects between emerging and least developed countries. The findings in our paper firstly highlight the nuances in financial development depending on the level of development in countries, and secondly that policies focused on financial inclusion of the poor can mitigate inequality.

A bootstrap panel granger causality analysis of the relationships between financial sector development and globalization in sub-saharan african countries

Abstract: This paper explores the causal relationship between financial sector development and globalization for twenty-one sub-Saharan African (SSA, hereafter) countries during the period 1980-2017. To measure financial sector development, we use a more comprehensive index of financial development, meanwhile, we use the economic dimension of globalization and both the de facto and the de jure economic globalization indices. Applying a panel bootstrap causality test which controls for both cross-sectional dependence and heterogeneity across countries, empirical results provide some evidence of causality between financial development and economic globalization indices though there is no causality for half of the sample.

An Appraisal of the Activities of Central Depository Bangladesh Limited (CDBL)

Abstract: In Bangladesh the establishment of Central Depository Bangladesh Limited (CDBL) added value to the stock market and plays a vital role in the progress of economic development. CDBL is engaged in the operations of the Central Depository System (CDS), a major financial market infrastructure in Bangladesh established as a part of the overall financial sector development. This study tried to analyze the growth and development of CDBL. Seven trend equations have been tested for different activities of CDBL.It is observed that CDBL was able to achieve a stable growth of listed securities in CDS, depository participants, settlement of securities transactions, documentation of CDBL, total assets and net income during the period of 2007-2015. Square of correlation coefficient (r 2 ) has also been tested for all trend equations. It indicates the prospect of CDBL in Bangladesh is relatively bright.