Topic
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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TL;DR: In this paper, the authors explored the structural impact of financial integration and exchange rate stability on macroeconomic variables (inflation, economic growth, inflation volatility, and growth volatility) in Nigeria from 1980 to 2012, using a structural model.
Abstract: This paper explores the structural impact of financial integration and exchange rate stability on macroeconomic variables (inflation, economic growth, inflation volatility, and growth volatility) in Nigeria from 1980 to 2012, using a structural model. The study employs the use of Vector Error Correction Model (Coefficient Diagnostic Wald Test, and Impulse Response Function of VECM) to achieve our objectives. Time series data was collected from World Bank Development Indicators, Central Bank of Nigeria bulletin (2012) and Azienman, Chinn and Ito (2013). Results indicates that exchange rate stability has no significant impact on inflation rate in the short run, while percentage increase in financial integration has a significant reduction impact on the rate of inflation in lag1&2 by 126% and 79% respectively. Again a percentage increase in exchange rate stability significantly increased economic growth in lag 1 &2 by 30% and 50% respectively, while financial integration together with the financial institution depth (money supply/GDP) and financial market depth (stock market capitalization/GDP) have no significant impact on economic growth. Furthermore, there is no significant impact of the financial integration and exchange rate stability on inflation and growth volatility in the short-run. Exchange rate stability transmitted positive shocks to economic growth and inflation volatility and negative shocks to inflation rate and growth volatility. The impulse response of inflation and economic growth to a unit shock from financial integration fluctuated for the periods, while shocks from financial integration emitted negative impulse on inflation and growth volatility. In addition, impulse response of exchange rate stability and financial integration to unit shock from inflation, growth volatility and financial sector development (stock market capitalization/GDP, money supply/GDP) remained negative. The results imply that the combination of financial integration and exchange rate stability policy is a viable instrument towards achieving a stable economy. Therefore, this paper suggests that government should pay closer attention towards policies that will ensure stability in socio-economic and political environment, if Nigeria will achieve greater benefits in exchange rate stability and more financial integration.
19 Sep 2015
TL;DR: In this article, the authors aimed at analyzing the finance-growth nexus by considering the existing theoretical background, empirical studies, and real life cases, and showed that the influence of financial sector on economic growth, and as a result of real sector's activity, is becoming more obvious, especially in the light of the recent global financial economic crisis.
Abstract: In the view of every country’s endeavors for sustainable economic development, the question of key factors influencing economic growth or recession is becoming more prominent. For several decades now, finance is being considered as one of such factors by some scholars and rejected by others. This article is aimed at analyzing the finance-growth nexus by considering the existing theoretical background, empirical studies, and real life cases. Research has shown that the influence of financial sector on economic growth, and as a result of real sector’s activity, is becoming more obvious, especially in the light of the recent global financial-economic crisis. What remains unknown is the extent to which finance can encourage economies to develop.
Dissertation•
01 Jan 2011
TL;DR: In this paper, the authors evaluated the contribution of micro-finance towards financial sector development in Kenya and found that the contribution in economic development of Kenyan economy through the promotion of micro and small enterprises is now widely recognized as a viable and dynamic strategy for achieving national goals, including employment creation and poverty alleviation.
Abstract: The importance of the financial system to economic development is well understood and Kenya's long-term national strategy, Vision 2030, identified the sector as one of the country's core growth pillars. Key to the success of the Kenya's financial system is the microfinance. Its contribution in the economic development of Kenyan economy through the promotion of micro and small enterprises is now widely recognized as a viable and dynamic strategy for achieving national goals, including employment creation and poverty alleviation. Despite the grandeurs role played by this sector, studies are limited in terms of showing the impact of microfinance on the financial sector development. This research sought to evaluate the contributions of microfinance towards financial sector development in Kenya.
Dissertation•
01 Jan 2014
TL;DR: In this article , the authors investigate the moderating role of institutions/governance on the foreign bank presence-financial development nexus, and find evidence that foreign banks in host countries increase financial development in the presence of quality institutions.