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 Rising Influence of the Gulf region in Global Finance and Business

Abstract: Summary z This article examines the positioning of the Gulf region in the global economy, including the support provided in the present global crisis by savings put aside from the recent energy boom and future strategic development in the services sector, especially in finance and wealth management. z The effects of the global recession are heavily constraining growth in the Gulf region, exacerbated by the exceptionally sharp drop in oil prices. The Gulf financial sector’s high local deposit base and focus on asset management rather than fully liberalised Western style investment banking was hoped to protect it from the worst of the financial crisis – but the impact is still serious. z However non-energy sectors in the region may be quick to benefit from a widely expected increase in commodity prices. Development of the financial services industry will continue to be strongly supported as this is seen as a key strategic sector for future development and jobs. The Gulf Cooperation Council (GCC) free trade zone is also becoming increasingly similar to a monetary union given currency near-parity and negotiations towards a central bank. z The region benefits partly from strong pre-recession economic conditions matching high growth with high per capita GDP; and partly from to cautious government fiscal policies matching conservative growth forecasts with saving oil revenues into sovereign wealth funds thus allowing them to weather major drops in energy revenues without making significant adjustments to spending plans. z Investment in financial sector development and growth will continue to be a priority for the GCC states. This sector still represents a significant opportunity to generate more and better jobs in the long run, especially for younger generations coming through the education and training system.

An empirical approach to financial sector development and GDP level in Fiji Islands

Abstract: Fiji experience strong growth in financial sector over the last three decade Examining the relationship between financial sector development and gross domestic product, this paper finds that financial sector development has significant positive impact on Fiji‟s economic output

A Pre-export Guarantee Facility in Moldova : Mitigating Political Risk in Transition

Abstract: Onno Rahl and Moldovan firms wanting to export face severe Moldova asked the World Bank to help design Alfred Watkins financing constraints. The local banking sysa pre-export guarantee facility, but with the tem has neither the capital base nor the techniproviso that the facility should not require the cal capacity to finance their working capital government to assume commercial risks. Unrequirements. And export credit agencies eider this facility, which became operational on ther are not willing to provide cover or, if they October 30, 1995, the Moldovan government are, require a full government counterguaranguarantees financiers against political risk, and tee covering both commercial and political risks. the World Bank provides a backstop guaranThus, to enable viable local firms to attract pritee of the government's claim payment obligavate working capital, the government of tions. A similar approach could be used in other transition economies, where firms face much the same constraints.

Financial globalization, institutions and economic growth impact on financial sector development in fragile countries using gmm estimator

Abstract: Purpose- The aim of the research is to predict the impact of financial globalization, institutional quality and economic growth on financial development in fragile economies. In this paper the panel data consists of Turkey, Brazil, India, South Africa, Indonesia, Argentina, Egypt, Pakistan’s annual data from 1995-2017. Methodology –System GMM dynamic panel data approach has been applied to deal with simultaneity bias and endogeneity bias when the explanatory variable is correlated with the residual disturbance term. The System GMM estimator combines regression in differences with regression in levels to get rid of the individual specific effects and along with it any time invariant regressor. The models are estimated by using one step system GMM estimator in other words Arellano and Bover /Blundell and Bond System Generalized Moments Method. Findings- The results show that economic growth and financial development are positively related. Thanks to financial development interest rates can be determined by market conditions and financial intermediaries can minimize transaction costs and information acquisition costs can be minimized. Empirical findings suggest policy guidelines for developing financial sector by using economic growth as an economic instrument. Conclusion- The paper concludes that economic growth have significant impact on financial development so both financial institutions and financial markets development in fragile countries. For less developed countries, developments in institutions are likely to have far greater direct effects on growth than financial development itself. When the financial system is developed, Institutional improvements can also deliver more growth. Since global standards for institutions such as International Country Risk Guide, Global Government Indicators increase, it seems also developing ountries are aware of the importance of institutional quality on economic growth. The findings suggest that financial development is affected by economic growth, inflation and population in fragile countries.

System GMM-based Model for Monitoring Joint Impact of ICT-infrastructure, Financial Development, and Trade-openness on Economic-growth

Abstract: This study has analyzed the joint impact of information communications technology (ICT) Infrastructure, financial development (FD), and trade openness (TO) on economic growth (EG). We have used the data from 85 countries (including 27 low-income and 58 high-income countries). In this sample, we have collected the data from the year 2000-2019. We have framed hypotheses for samples and applied OLS, fixed effect regression (FER), and GMM method. Our results provide evidence that (a) ICT infrastructure is a significant and positive interpreter of economic growth, (b) Individual consideration of trade openness and financial development is insignificant and negative for both groups of countries, ICT infrastructure requires more financial development and trade openness in low-income countries (LICs) in comparison to high-income countries(HICs), (c) ICT infrastructure-financial development-trade openness nexus differ significantly for both groups of countries. Our study acquiesces that variables are grave drivers of any economy and comprehensive growth in low-income countries. In this work, we have also discussed policy implications.