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This paper attempts to empirically examine the rule of financial sector toward economic growth and to determine the determinants of economic growth in some countries. The relationship between independent variables, exchange rate and total reserve, and economic growth was investigated for selected 67 countries. The data were analyzed using the OLS Method. Findings of the research showed that the total reserve is significant, while the exchange rate is not significant in explaining the economic growth for the selected 67 countries. The implication of the study is that countries need to increase their total reserves to boost economic growth. In the future, study should categorize countries according to those using pegged and unpegged exchange rate systems as to see the differences of impact on economic growth. [ABSTRACT FROM AUTHOR]

Indonesia is starting to pay attention to this trending issue to boost national economic growth because Indonesia is still below other countries regarding the development of its financial sector, especially in Islamic finance. This study employs a quantitative research approach, utilizing multiple linear regression analysis, to investigate the influence of various aspects of Islamic finance on Gross Domestic Product (GDP) as an indicator of economic growth in Indonesia. This research is expected to be able to examine in more detail the role model of Islamic financial deepening in Indonesia and how it affects economic growth. Through a comprehensive discussion, we examine the potential impact of Islamic financial instruments, including Murabahah, Mudharabah (Islamic deposit), total assets of Islamic banking, Islamic stock market capitalization, and Islamic stock transaction volume, on economic growth. Findings suggest that while certain components, such as government bonds (sukuk), have a significant positive influence on GDP through infrastructure financing and investor confidence, others, like corporate bonds (sukuk), may have limited direct impact due to their focus on specific corporations rather than broad-based economic growth. This research contributes to the understanding of the role of Islamic finance in Indonesia's economic development and informs policymakers, practitioners, and academics on optimizing its contributions while ensuring financial stability and inclusion. [ABSTRACT FROM AUTHOR]

In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. We find the presence of the bidirectional nexus between GDP and financial sector development and among GDP and trade openness in the European economies. Finally, panel causality verifies that bidirectional causal connection is found between economic growth, environmental degradation (CO2), financial development, and trade openness. [ABSTRACT FROM AUTHOR]

It is an established fact that financial inclusion is a very important driver of economic growth which benefits the poor directly while raising the GDP and the quality of life for people in a particular country. India currently has a working population of more than 540 million at any given time. Of these, 6% serve in organized and public / private sectors. The rest serve in the unorganized sector. Technology-based solutions can be used by formal financial institutions to provide a range of financial services to the poor and support the drive for financial inclusion. The effective use of technology can help standardize processes in banking and microfinance as well as reduce the cost of operations. This study conducted in two districts of Karnataka focusses on the extent of financial exclusion; need for financial inclusion; and how technology could bridge the gap and make financial inclusion penetrate rural masses and be effective. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between financial development and inclusive growth in Nigeria for the period 1980 - 2013. The technique of analysis is the quantile regression; which is to obtain a threshold for which the former impacts on the latter. The result shows a threshold level of 90th percentile. Interestingly, the study also found that the impact of financial development on inclusive growth depends on the measure of the former up to the threshold level and not beyond. Through a granger causality test, the direction of causality is through the inclusive growth rather than through financial development; through the financial deepening measure. While the study found that either a low level or high level of openness on trade and capital investment are desirable for inclusive growth in Nigeria, the results also reveal that government involvement in the workings of the Nigeria economy and financial openness are sensitive to the pattern of financial development. With financial deepening, both are negatively related to inclusive growth but positively related to inclusive growth when financial widening is considered. This suggests that government intervention in the activities of the private sector is detrimental when the latter are to drive financial development process. However, the involvement of government in ensuring the appropriate level of financial widening, through the central bank operations, produces a positive impact on growth. [ABSTRACT FROM AUTHOR]

We construct an index of financial development for twenty-three Asian economies based on sub-indices of access, depth, and efficiency of financial institutions and markets and find evidence that economies with weaker financial systems are catching up to the Asian benchmark economies, namely Hong Kong, China; Japan; the Republic of Korea; and Singapore. Gross domestic product (GDP) per capita, aggregate GDP, and mobile subscriptions all increase the growth rate of financial development in Asian economies while institutional factors have insignificant or ambiguous effects. We also evaluate the relative importance of the sub-indices in delivering high economic growth, low volatility, and greater financial access. [ABSTRACT FROM AUTHOR]