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Saturday, July 11, 2020 | History

4 edition of Financial deepening & economic growth in some ERF countries found in the catalog.

Financial deepening & economic growth in some ERF countries

Ali Farag Darrat

Financial deepening & economic growth in some ERF countries

an empirical enquiry

by Ali Farag Darrat

  • 243 Want to read
  • 17 Currently reading

Published by Economic Research Forum for the Arab Countries, Iran and Turkey in Dokki, Cairo .
Written in English


Edition Notes

StatementAli F. Darrat
SeriesWorking paper series -- 9704
Classifications
LC ClassificationsMicrofiche 2012/52005 (H)
The Physical Object
FormatMicroform
Pagination17 p.
Number of Pages17
ID Numbers
Open LibraryOL25340762M
LC Control Number2012349421

directional causality between financial deepening and growth for the panels of OECD and non-OECD countries. We conclude that policies aiming at improving financial markets (economic growth) will have, in the long-run, a significant effect on economic growth (financial development). The remainder of the paper is organized as follows: Section 2. Financial deepening is a term used by economists to refer to increasing provision of financial can refer both a wider choice of services and better access for different socioeconomic groups. Financial deepening can have an effect on both individuals' and societies' economic situations.

  Italy Economic Growth The economy is set to contract heavily this year, buffeted by the effects of the pandemic on both domestic activity, European supply chains and external demand. As a result, the frail fiscal position will weaken further which, coupled with the banking system’s existing fragilities, heightens risks of financial turmoil. Nzotta and Okereke () studied the relationship of financial deepening and economic growth in Nigeria. The study shows that financial deepening index is low in Nigeria and financial system has not sustained an effective intermediation. Pradhan () explores the relationship among financial deepening, FDI and economic growth for India.

  Financial Deepening and Economic Growth: The Turkish Experience. Hilal Yildiz. 1,*, Seda Atasaygin Some of them found that the demandpulling hypothesis is - Financial growth→economic growth (positively) for 8 countries Financial growth↔economic growth for 6 countries. Rioja, Valev () 74 countries. This paper examined the direction of causality between financial deepening and economic growth in Nigeria for the period – The study adopted the Toda–Yamamoto augmented Granger causality test and results showed that the growth-financial deepening nexus in Nigeria follows the supply-leading hypothesis. This means that it is financial deepening that leads to growth and not growth.


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Financial deepening & economic growth in some ERF countries by Ali Farag Darrat Download PDF EPUB FB2

Downloadable. This study investigates empirically the role of financial deepening in the economic growth process in three ERF countries (Saudi Arabia, Turkey, and the UAE). Unlike most previous research, focus here is on the causal link between the two variables in order to discriminate between several alternative theoretical hypotheses.

This volume brings together a collection of theoretical and empirical findings on aspects of financial development and economic growth in developing countries. The book is divided into two parts.

The first identifies and analyses the major theoretical issues using examples, where possible, from developing countries to show how these work in Price: $ By the end of the century, however, some financial historians had begun to turn the tide, and the phrase 'finance-growth nexus' became part of the lexicon of modern economics.

Recent experience has added another dimension in that countries with broader, deeper and more active financial systems might be prone to financial crises, particularly if. some concluding remarks in Part 6. Growth Performance in Phases and Trends A major criterion of a developing country’s growth performance suggested in the economic literature1 is whether the country’s economic growth rate exceeds that of the world’s most developed economies.

The complex interaction among aging, growth, and financial deepening can be expected to result in a world where developing countries will contribute 62 of every dollars of world saving inup from 45 dollars inand where they account for between $ trillion and $13 trillion of global gross capital flows, rising from $ “Economic Development And Financial Deepening Revisited: A Case Study of Kuwait” Presented at the International Conference on Structure, Performance and Future of Financial Institutions in GCC Countries organized by the National Centre For Economic Research, University of Qatar, Doha, Qatar, April.

that economic growth leads to financial deepening if the economic growth variable explains more of the variance in the forecast errors for the financial deepening variables. This study contributes to understanding the role of financial development on economic growth theoretically and empirically.

In the theoretical part of the paper, by developing a Solow–Swan growth model augmented with financial markets in the tradition of Wu, Hou, and Cheng (), we show that debt from credit markets and equity from stock markets are two long run determinants of GDP per.

Demetriades and Hussein () find little systematic evidence in favor of the view that finance is a leading factor in the process of economic growth.

In addition they found that for the majority of the countries they examine, causality is bi-directional, while in some cases financial development follows economic growth. Also, recent empirical economic evidence across a cross-section of 80 countries over the time period shows that higher levels of financial development are significantly and robustly correlated with faster current and future rates of economic growth, physical capital accumulation, and economic efficiency improvements.

effect reflects primarily the impact of financial deepening on total factor productivity growth, rather than on capital accumulation. The third and related finding of the study is that the pace of financial development matters.

When it proceeds too fast, deepening financial institutions can lead to economic and financial instability. This study aims to analyze the impact of the development and stability of the financial sector on economic growth on the basis of the quantitative methods that produce robust results.

The following research hypotheses are tested: /H1/ The relationship between financial sector development (stability) and economic growth is nonlinear; /H2/ An excessively large size of the financial system. looking at the country’s economic growth and development.

Economic growth is what mainly determines the material well-being of a nation. Effect of Financial Deepening on Economic Growth Financial deepening refers to an increase in the supply of financial assets in an economy.

However, there is clear indication that financial deepening increases growth among the countries with real GDP per capita betweenUS$3, andUS$12, ().

In sum, we find the widely accepted effect of finance on growth to be still present but fragile. financial deepening an) d othe growtr relateh factord isn selecte sub-Saharad African n (SSA) countries Th.e stud wily alsl attempo tto relat these factore tso the economic growth of these countries through an unrestricted/augmented neoclassica growtl h model using cross-countr datay.

Financial development is one of the keys to the long-run economic growth. Since economic growth is one of the important goals of every country, the investigation of the causes of economic growth is vital so that planners and policy makers should pay attention to it.

Economists traditionally focusing on the long-run relationship between financial development and economic growth have argued that.

To understand economic growth, which is really concerned with the growth in living standards of an average person, it is often useful to focus on GDP per capita. Using GDP per capita also makes it easier to compare countries with smaller numbers of people, like Belgium, Uruguay, or Zimbabwe, with countries that have larger populations, like the.

This note presents results from Granger-causality tests on 22 Asian, Latin American and Caribbean developing economies in an attempt to distinguish between competing hypotheses regarding the role of financial deepening in economic growth. The results suggest that in many cases financial deepening does not make much difference to economic growth: for eight countries no lead-lag relationship was.

Conflicting views exist on the role of financial development in stimulating economic growth. While some renowned persons like the Nobel laureate Lucas () and Stern () who is the. Granger-causality tests on data for 22 Asian, Latin American and Caribbean developing economies suggest that financial deepening does not make much difference to economic growth: for eight countries no lead-lag relationship was detected and in six more economic growth led financial deepening.

However, few studies have tried to explain how the link between financial development and economic growth works during periods of financial instability.

Bauducco, Buliř, and Čihák (), Hakkio and Keeton () and Carlson et al. () have recently studied the effects of financial stress on economy .on economic growth of the banking sector deepening in Kenya Several studies with mixed results have been conducted across countries to investigate the relationship between financial deepening and economic growth.

Some studies have used developed and developing cross-countries data sets (King and Levine, ). To some, the global financial crisis suggested thatan abundance of financial intermediaries and insufficient regulations can lead to economic collapse.

However, during the same time period, increased access to financial institutions in developing countries has had a profound impact on their growth—even though the majority of these.