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Existing literature on relationship between financial development (FD) and economic growth (EG) has presented dichotomous observations: a linear relationship by many of the studies and yet an inverted U-shaped relationship observed by number of renowned researchers. Most of the studies used narrow measures like credit to GDP growth ratio for measurement of financial development. Moreover, many of the researches have taken only the post-Global Financial Crisis data or neglected the data pre-1990s and most of the researches related to developing countries are on single-country data. Therefore, this relationship requires re-estimation to arrive at some conclusive results. This paper explores the relationship between financial development and economic for both developed and developing countries based on broader measures of financial development (financial access, financial depth, and financial efficiency). Panel Corrected Standard Error regression model is used to evaluate the relationship for 23 developed and 35 developing countries. Our results observe contrasting facts for developed and developing countries. For developed countries, we observed an inverted U-shaped relationship between FD and EG. The contributing sub-components of FD are financial depth and efficiency. However, financial access is observed to have a U-shaped relationship. However, for developing countries, we don't observe an inverted U-shaped relationship but linear relationship between FD and EG. The contributing sub-components are financial depth and financial efficiency. [ABSTRACT FROM AUTHOR]

One of the challenges facing economic sectors is providing the required financing and liquidity for fixed investments and current capital (working capital). The current study is aimed to expand such studies in another aspect of the role of financial markets in terms of their relationship with macroeconomic variables such as economic growth rate, unemployment rate, and exchange rate as vital economic variables. Considering the position of the financial system in the allocation and efficiency of financial resources, this study deals with the impact and importance of financial repression policies and financial depth in solving the problems of the unemployment rate, exchange rate, and economic growth rate in Iran with the simultaneous equations approach from 1971 to 2017. The results showed that financial repression and depth policies significantly affect macroeconomic variables (economic growth, unemployment rate, and exchange rate). Furthermore, it is indicated that the financial repression policy does not have a negative effect on economic growth and a positive effect on the unemployment rate; however, it has a positive impact on the exchange rate. In addition, this study unravels that the financial depth policy does not negatively and significantly affect economic growth. However, it positively affects the exchange rate and unemployment rate. [ABSTRACT FROM AUTHOR]

This paper aimed at examining the influence of institutional quality on the banking sector's financial depth in Tanzania for a period between 1991 and 2022. In this paper institutional quality is measured by control of corruption, rule of law, government effectiveness, and regulatory quality. The paper employed secondary data from World Bank Governance development indicators and World Bank financial development indicators. A robust regression model was used to analyse data. The paper found that control of corruption, rule of law and regulatory quality have a positive influence on the banking sector financial depth while only government effectiveness influence negatively the banking sector financial depth. The findings imply that improved control of corruption, appropriately following rule of law can lead to a more transparent and accountable regulatory environment, which in turn fosters greater confidence in the banking sector, and also effective government policies attract fast deepening of financial sector. Eventually, to enhance institutional quality towards deepening banking sector depth in Tanzania, the government should focus on enhancing anti-corruption efforts and promoting transparency and accountability in both the public and private sectors. On the other hand, strategies to enhance inter-agency coordination, streamlining decision-making processes, and improving public service delivery in areas affecting the banking sector should be developed and implemented. Finally, the government should focus on strengthening its legal and regulatory frameworks with emphasis on promoting fair and impartial dispute resolution, protecting property rights, and enforcing contracts. [ABSTRACT FROM AUTHOR]

The relationship between financial development and economic growth in China is controversial. From this perspective, this article aims to identify this relationship using both capital market and banking intermediation indicators, which were rarely considered in the previous literature. An autoregressive model with staggered lags (ARDL) examines the long-run cointegration relationship between 1980 and 2020. The results suggest that the contribution of different subsectors of the Chinese financial system to economic growth differs. The development of the money market has a negative impact, whereas market capitalization has a positive impact on economic growth in China. Regarding the contribution of the banking system to China's economic growth, the two variables measuring the depth of financial institutions showed opposite impacts in both the short and long term. Regarding important policy implications, regulators need to ensure a pro-growth environment, effectively regulate the informal banking system, and prevent potential financial risks by revising policies. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the effect of digital financial innovation on financial depth and economic growth in Kenya. Design/methodology/approach: The study utilized autoregressive distributed lag (ARDL) model, which is preferable over other time series methods as the model allows application of co-integration tests to time series with different integration orders and is flexible to the sample size including small and finite. Findings: The main findings of this paper are as follows: first, there is evidence of a positive relationship between digital financial innovation and financial depth with the strongest impact emanating from Internet usage and mobile financial services and the lowest impact from bank branches; second, the results reveal a significant positive impact of financial depth on economic growth consistent with the supply-leading finance theory. Practical implications: The results of the study imply a need for investment in technology-enabling infrastructure for digital financial services (DFS) and a redesign of strategies to avoid further financial exclusion of low-income earners due to the unaffordability of digital devices and financial and digital illiteracy. Originality/value: The study is original and important for policymakers as the study provides insights on the components of financial innovation that are growth-enhancing in Kenya, considering that some aspects of innovation can be growth-retarding as was demonstrated during the global financial crisis. [ABSTRACT FROM AUTHOR]

The article presents an in-depth analysis of the formation and development of the capital market (stocks and bonds segment) in China. The factors determining the valuation of shares that are in circulation are highlighted. While the first factor identifies an assessment based on the company’s financial statements, the second factor considers current market conditions and investor sentiment. Examining historical data, it is interesting to note that from 2000 to 2006, the total market capitalization of stocks remained stable and amounted to a substantial 4 trillion yuan. However, in 2007 There was a significant shift when the market capitalization grew significantly and reached as much as 30 trillion yuan. This sudden growth can be explained by various reasons, such as increased investor confidence, favorable economic conditions and the introduction of progressive financial regulation. In addition, it is important to note that in the same year, the Shanghai Composite index (a key indicator of the Chinese stock market) reached an unprecedented value of 6,123.04 points. This indicator demonstrated the stability and potential of the Chinese capital market, and attracted both domestic and international investors. Thus, the analysis presented in the article reveals the intricacies of the Chinese capital market and the mechanisms of its assessment. This analysis establishes the importance of both book value and market value in determining the valuation of outstanding shares. In addition, historical trends have highlighted the resilience and vulnerability of the market to external shocks, as evidenced by significant fluctuations in market capitalization. In general, this study helps to understand the Chinese capital market and its evolution over time.

The main objective of this study is to examine the data, on inclusion and financial depth in Algeria from 2004 to 2021. The aim is to understand and measure the relationship and correlation between these two variables. To achieve this, we utilized both Excel and Eviews12 programs to test our hypotheses and discuss our findings Our study discovered that there is no impact between the credit provided to the sector and ATMs. However interestingly we did find a positive effect between the expansion of money supply and the number of ATM transactions. Specifically for every 1% increase in money supply there was an increase of 0.83% in ATM transactions. Furthermore, our research revealed that both credit provision to the sector and an expanded money supply has an influence on the number of bank branches. [ABSTRACT FROM AUTHOR]

This paper develops a Structural Satellite version of the Financial-Macroeconometric Model of India (SSFMMI) to examine whether the surge in Nonperforming Assets (NPAs) in Indian Public Sector Banks (PSUs) post-2015 is due to macroeconomic shocks or better classification of loans and cleaning of bank balance sheets. Specifically, the paper analyses the impact of a rainfall shock, domestic food price shock, world oil price shock, fiscal shock, and monetary shock using counterfactual policy simulations and an out-of-sample forecasting framework to validate the impact of these macroeconomic shocks on NPA levels. The paper's outcomes suggest that the late surges in NPAs are not due to macroeconomic shocks and, therefore, that Indian banks are resilient to such shocks. However, the study reveals that the rise in domestic fuel prices and world food prices can cause a surge in NPAs levels. [ABSTRACT FROM AUTHOR]

The study examines Nigeria's non-linear relationship between fiscal policy and financial depth. In essence, the study is concerned with the impacts of fiscal deficit, domestic debt, and government expenditure on financial depth. The study uses four indicators of financial deepening: liquid liabilities, credit to the private sector, deposit money banks' assets and financial system deposits (all indicators are expressed as percent of GDP). In particular, the government is the threshold variable expected to have a threshold effect on Nigeria's financial depth. The study covers 60 years between 1961 and 2020 and employs a threshold regression model to achieve the research objectives. A linear regression model is employed for the robustness test by including the government expenditure square to test the significance of non-linearity. The study's findings establish fiscal policy's significance in driving financial depth. Beyond the threshold of 8.11 percent, government expenditure significantly increases financial deepening. This is consistent across the indicators of financial depth and the overall financial depth. It further shows the important role of fiscal deficit and domestic debt in deepening the financial market as the threshold value exceeds 8.11 percent. However, fiscal may have a negative, though insignificant, effect on financial depth when the threshold of government expenditure is no more than 8.11%. Real per capita is also a key factor in promoting financial depth. Therefore, higher income is important for a financially deeper financial system. Therefore, attaining minimum government expenditure is crucial for accelerating financial development in Nigeria. [ABSTRACT FROM AUTHOR]

Copyright of Akademik Hassasiyetler is the property of Huzeyfe Suleyman Arslan and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examined the relationship between financial depth indicators and the stock returns in three selected Sub-Saharan African (SSA) countries from 1990-2019 comparatively. Specifically, the study investigated the effect of financial depth variables (ratios of market capitalization to the Gross Domestic Product (GDP); monetary/liquidity in circulation (M3) to the GDP; lending/savings rate spread, financial sector contribution to GDP; credit to private sector to GDP; Central Bank assets to GDP and commercial banks liabilities to GDP) on the stock market returns of the selected Anglophone SSA countries (Kenya, Nigeria and South Africa). The study employed descriptive statistics, correlations, Johansen co-integration, vector autoregressive (VAR) and Granger causality to analyze the data of selected countries and compare the results to identify the different natures of effects of financial depth on stock returns. Results revealed, that, to a large extent, financial depth variables promote stock market growth in Kenya but there was no evidence that the former significantly affected the latter in Nigeria. However, in South Africa, financial depth variables have significant negative effect on stock returns, at least, in the short-run. These results imply that, comparatively, there are marked differences among the three countries with respect to the effect of financial depth on stock returns. Nevertheless, there is evidence of causal relationship between the variables in the three countries. The study concluded that financial depth has significant effects on stock returns in Kenya and South Africa but not in Nigeria. It is therefore recommended that monetary authorities should develop strategies that will minimize monetary policy lags which delay the transmission of policy effects on the target in the short run. Also, governments and the Central Banks of the countries under study, especially Nigeria and South Africa should re-appraise their financial depth efforts vis-à-vis stock market development.

Financial deepening has increased in recent decades in CEE countries that have transitioned from a centrally planned economy to a market economy. However, its impact on carbon emissions is controversial. Although the determinants of emissions have been frequently examined in line with the EU’s goal of net zero carbon emissions, the empirical literature on the effects of financial deepening is insufficient. In that context, this study aims to investigate the impact of financial depth on the level of carbon emissions in CEE counties. A panel threshold regression model was carried out for a set of 11 countries, from 1995 to 2018. The main findings confirmed the existence of a double threshold effect. While in the low financial depth regime, financial deepening increases carbon emissions, in the medium regime it reduces them. In the high regime, however, no statistically significant effects were observed regarding the effects of the financial deepening. Moreover, emissions are reduced with taxes. None of the countries in the sample has financial depth index value between threshold values, according to the last three years’ averages. The findings argue that financial deepening will not be an adequate solution to reducing emissions and point to the importance of public tax policies.

Background and objective: The paper explores the impact of foreign direct investment and financial development on regional growth at the EU regional level for 2005-2017. Both FDI and financial development are important determinants of the regions' growth, but not for all EU regions homogeneously. Some EU regions seem to benefit more than others, depending on certain characteristics, which implies that FDI attraction policies need to bear in mind not only country specificities, but also regional specificities, hence confirming the need for developing FDI attraction policies at the subnational level: financial development, capacity building, and Investment Promotion Agencies are key, for example. Methods: The methodology used in the paper relies on a beta-convergence model and on fixed effects estimation. In addition, a GMM difference model accounts for endogeneity. Results: Our empirical findings indicate that, in less wealthy (and more peripheral) regions compared to wealthy regions, FDI productivity spillovers are more significant. In other words, in less wealthy regions, the imitation effect prevails over the competition effect. Conclusions: FDI and financial development are important determinants of regional growth, especially for less developed and peripheral regions. Contribution/value: Financial development is shown to be a crucial determinant for economic growth at the regional level, especially for peripheral regions, which raises essential policy implications, especially for the sake of economic disparities in the EU NUTS 2 regions. In other words, local access to finance, especially to bank credit, plays a crucial role for regional growth, despite the continuous integration of financial markets. Also, there is an income and geographic heterogeneity when it comes to estimating FDI spillovers; therefore, the impact of FDI on growth is not always homogeneous across territories, which challenges the idea of simple "bright" or "dark" sides to the effects of FDI. [ABSTRACT FROM AUTHOR]

In the era of globalization, there is a high degree of interconnection between a country's economy and the state of its financial sector. Effective functioning and dynamic development of the financial sector become an urgent need for ensuring stable economic growth. However, quite often, many developing countries on their path to this development face a series of constraints. These restrictions can seriously affect their financial potential, hindering the development of financial systems. Given these factors, the importance of overcoming them and searching and developing the latest innovative methods for analyzing financial phenomena and processes comes to the fore and become a pressing task of the present. Following this trend, this paper presents the author's model of estimating the state of the financial market. The comparative basis for this assessment was the integral indicator of the state, formed based on partial estimates of financial depth, access to finance, financial stability, and financial efficiency. The foundation for it was the methodology of fuzzy-set modeling, the purpose of which, regarding the issues under investigation, is in-depth study of the influence of financial structures on economic growth and the classification of financial indicators. Applying this model in practice, the authors have collected and analyzed extensive arrays of data concerning integral indicators of access to finance, financial depth, stability, and efficiency for two countries, Russia and the USA, and conducted a comparative analysis of the financial markets' changes during the selected period. The obtained results and observations allow to conclude that, unlike the USA, where instability and negative dynamics are observed, the financial market of Russia remains relatively stable during the period under review. Thus, on the basis of applying this model, it is possible to develop a more effective financial and banking policy. The model provides significant opportunities for deep and comprehensive analysis of financial phenomena and processes, which contributes to a more accurate assessment of the state of the financial market and rational forecasting of its future development.

Background and objective: The paper explores the impact of foreign direct investment and financial development on regional growth at the EU regional level for 2005–2017. Both FDI and financial development are important determinants of the regions’ growth, but not for all EU regions homogeneously. Some EU regions seem to benefit more than others, depending on certain characteristics, which implies that FDI attraction policies need to bear in mind not only country specificities, but also regional specificities, hence confirming the need for developing FDI attraction policies at the subnational level: financial development, capacity building, and Investment Promotion Agencies are key, for example. Methods: The methodology used in the paper relies on a beta-convergence model and on fixed effects estimation. In addition, a GMM difference model accounts for endogeneity. Results: Our empirical findings indicate that, in less wealthy (and more peripheral) regions compared to wealthy regions, FDI productivity spillovers are more significant. In other words, in less wealthy regions, the imitation effect prevails over the competition effect. Conclusions: FDI and financial development are important determinants of regional growth, especially for less developed and peripheral regions. Contribution/value: Financial development is shown to be a crucial determinant for economic growth at the regional level, especially for peripheral regions, which raises essential policy implications, especially for the sake of economic disparities in the EU NUTS 2 regions. In other words, local access to finance, especially to bank credit, plays a crucial role for regional growth, despite the continuous integration of financial markets. Also, there is an income and geographic heterogeneity when it comes to estimating FDI spillovers; therefore, the impact of FDI on growth is not always homogeneous across territories, which challenges the idea of simple “bright” or “dark” sides to the effects of FDI.

An increase in energy crises and environmental degradation has pushed countries to adopt more sustainable practices. In this situation, financial technology has played an important role to lower carbon emissions by integrating renewable energy resources that can help increase renewable energy resource consumption (REC) and lower carbon emissions (CE). To better understand this transmission mechanism, this study has collected a panel dataset of 26 Morgan Stanley Capital International (MSCI) developing countries for the 2011–2021 period. Furthermore, a proxy indicator for financial technology (FinTech) was developed by extracting relevant data from CrunchBase. Pooled ordinary least square and robust fixed effects technique was adopted to analyse the influence of FinTech on renewable energy and carbon emissions for robustness. Results of the study show that FinTech development promotes renewable energy resource consumption (REC) and discourages carbon emissions (CE), moreover, economic growth positively impacts, and carbon emissions (CE). This research emphasizes the importance of adopting financial technology as an important deterrent of further environmental damage. Additionally, in line with the results of this study, policymakers should design and implement an industrial policy which promotes sustainable economic growth which can pave the path for a circular economy model in the future. [ABSTRACT FROM AUTHOR]

Although value of financial development for logistics industry is stressed by literature, the studies examining the impact of the dimensions of financial development-depth, access, and efficiency- on logistics performance are limited. Hence, the purpose of this paper is to contribute to the literature by empirically examining the association among logistics performance, financial depth, access and efficiency, by adding global competitiveness and good governance variables into the model. PLS-SEM is used to test the causal relationship between the variables simultaneously. Test results show that good governance has the largest impact on all. Importantly, financial depth, access, and efficiency have a significant and positive impact on logistics performance. One-unit change in financial depth, access, and efficiency leads 0,272, 0,195 and 0,164 unit change in logistics performance, respectively. Interestingly, we are not able to find statistically significant support for the linkage between financial depth and global competitiveness, but we find that financial access has the largest impact on global competitiveness compared to financial efficiency. [ABSTRACT FROM AUTHOR]

Abstract The purpose of the paper is to identify the factors of financial development that have the greatest impact on open innovation in 7 emerging countries. The analysis was performed featuring the MF-X-DMA method, as well as its further verification for autocorrelation and heteroscedasticity. The time period covers years from 2002 to 2020. The article states that the main indicators to improve financial development should enhance the process of bank lending and equity market development. An important area is the development of competition by providing equal access to information to all market participants in a continuously refining technical infrastructure. Regression analysis with the MF-X-DMA method confirms the statistical significance of this influence. The article fills the knowledge gap into the link between open innovations and the relatively low capitalization of the modern emerging countries’ financial market, low liquidity in small cap stocks at the financial market and concentration of the banking sector, as well as risks arising in the process of globalization. Another analysis has also been conducted by generating a novel fuzzy decision-making model. In the first stage, the determinants of open innovation-based fintech potential are weighted for the emerging economies. For this purpose, M-SWARA methodology is taken into consideration based on bipolar q-ROFSs and golden cut. The second stage of the analysis includes evaluating the emerging economies with the determinants of open innovation-based fintech potential. In this context, emerging seven countries are examined with ELECTRE methodology. It found the most significant factor is the open innovation-based fintech potential.

Financial deepening has increased in recent decades in CEE countries that have transitioned from a centrally planned economy to a market economy. However, its impact on carbon emissions is controversial. Although the determinants of emissions have been frequently examined in line with the EU's goal of net zero carbon emissions, the empirical literature on the effects of financial deepening is insufficient. In that context, this study aims to investigate the impact of financial depth on the level of carbon emissions in CEE counties. A panel threshold regression model was carried out for a set of 11 countries, from 1995 to 2018. The main findings confirmed the existence of a double threshold effect. While in the low financial depth regime, financial deepening increases carbon emissions, in the medium regime it reduces them. In the high regime, however, no statistically significant effects were observed regarding the effects of the financial deepening. Moreover, emissions are reduced with taxes. None of the countries in the sample has financial depth index value between threshold values, according to the last three years' averages. The findings argue that financial deepening will not be an adequate solution to reducing emissions and point to the importance of public tax policies. [ABSTRACT FROM AUTHOR]

We aim to analyze the existence of a novel agricultural production–augmented environmental Kuznets curve (EKC-AP) theory for energy transition, urban agglomeration, and financial depth. To conduct this research, we use a global panel of selected 54 countries belonging to low, medium, and high levels of economic development from 1971 to 2017. Since our data are distributed into three development levels, it is highly likely to face cross-sectional dependence across the countries within and between the development levels, which may provide biased empirical results. To outpace such possibility, we employ advanced econometric strategies, which are robust to cross-sectional dependence and slope heterogeneity issues. We found that agricultural production, energy transition, urban agglomeration, financial depth, and ecological degradation experience a long-term cointegrating equilibrium association. We also confirm that exists an EKC-AP linkage of agricultural production with ecological degradation in highly developed economies, while those at the low and medium levels of development reveal a positive exponential and monotonic impact, respectively, of agricultural production on ecological degradation. The energy transition is found to promote ecological sustainability in developed countries through technique impact, while it deteriorates the ecological quality in countries at the medium development level. Moreover, urban agglomeration adversely impacts the ecological quality in the economies at low and medium development levels, whereas it improves the ecological sustainability in developed economies. Besides, financial depth proves harmful to ecological sustainability, with less subtle effects in developed economies. Based on our findings, for countries at low and medium levels of development, we propose advancing farming techniques using ecologically friendly technologies, promoting green energy transition, expanding the share of the services sector, and providing green financial systems to support green investment projects to achieve the Sustainable Development agenda of the United Nations. [ABSTRACT FROM AUTHOR]

Environmental taxes and pollution reduction have been the subject of several studies. By factoring the costs of pollution and other environmental costs into pricing, environmental taxes assist in correcting erroneous price mechanisms in the marketplace. It did, however, overlook the government's potential to facilitate the use of efficient energy sources, which is critical for environmental neutrality. The competence of a government is determined by its tax revenues, which allow the state to participate more in renewable energy technologies, offer an excellent opportunity to reduce greenhouse gas emissions and global warming by replacing traditional energy sources. To that aim, the impact of government revenues and debts, as well as renewable energy on environmental neutrality in the United States, is the only motive to conduct this research. A significant outcome of the renewable energy-environment nexus is revealed by tax revenue and debt. Since there seems to be no causation in the first moment, but higher-order interconnectedness emerges, as the quarterly data from 1990Q1 to 2020Q4 has been obtained to test for causality-in-mean and causality-in-variance employing novel non-parametric causality-in-quantiles algorithms. The findings reveal that renewable energy consumption and financial depth have significant predictive power for ecological footprint, uncovering asymmetric prediction across ecological transmission. Also, tax revenues and government debts found a significant connection and predictive potential in estimating the environmental footprint level. Thus, out of multiple suggestions, the study suggests that the government push tax reform policies to obtain investment in renewable energy sources. This shift toward renewable technology innovation allows the US to go green and retain environmental sustainability, which is also an utmost urgency of the UN's Sustainable development Goals (SDG-7). [Display omitted] [ABSTRACT FROM AUTHOR]

One of the common features of transition economies in eastern and central Europe is dominance of foreign institutions in financial systems. In the early stages of the transition process, foreign banks entered financial systems and had big shares via new entrants and also privatization of state banks. No doubt, this affected them in the way of development. But it is not clear that how it affected the distribution of income. In this study, we query possible relations between income distribution inequality and financial depth via symmetric and asymmetric panel causality tests in selected transition economies between the years 1993 and 2015. According to asymmetric panel causality test, there is only a uni-directional causality running from positive component of financial depth to positive component of income inequality in Ukraine and from negative component of financial depth to negative component of income distribution inequality in Slovakia. The reason of weak relation between financial development via foreign bank entry and income inequality may be the type of foreign bank entry. [ABSTRACT FROM AUTHOR]

This paper examines the long-run and short-run growth effects of financial institutions depth in Nepal along with the sensitivity to the choice of proxy representing financial depth. Using annual time-series data for the period from 1980 till 2019, obtained from Quarterly Economic Bulletins published by Nepal Rastra Bank, the study employed autoregressive distribute lag (ARDL) model with bounds testing procedures to examine cointegration. Domestic credit to private sector, broad money supply, total deposits and financial institution’s assets are used as proxies for financial institutions depth as indicated by World Bank. Real GDP is used to measure economic growth and the influence of macroeconomic environment is accounted by inflation and trade openness. The bounds tests found cointegration in economic growth functions and the regression results revealed that domestic credit to private sector performed better than other indicators in terms of its significant contribution to economic growth both in the long-run and the short-run. Money supply and financial deposits show significant positive contribution to growth in the long-run. The positive relationship of financial depth indicators with economic growth also supports the supply-leading (finance-led-growth) hypothesis in the long-run. Policies must be aimed at efficient allocation of affordable credit to profitable projects for short-run and long-run growth. Expansionary fiscal and monetary policy and long-term deposits are highly desirable for the long-run growth in Nepal.

In achieving a desirable sustainable economic growth in developing countries, the role of financial development and international migrant remittances cannot be underplayed. This study attempts to investigate the dynamic interactions between the migrant remittances and the financial sector development from a multidimensional perspective in 22 sub-Sahara African countries using a panel vector autoregression model over the period 2004-2017. Specifically, the study focuses on the multidimensions of financial development including financial depth, financial access, and financial efficiency in financial institutions (FI) and their relationship with the remittances. The findings suggest that: First, the migrant's remittances are detrimental for the overall FI while the FI are found to positively influence the remittances inflows. Second, the relationship between the remittances and the FI varies with the dimensions of FI. There is a positive dynamic interaction between the remittances, the financial efficiency, and financial access, except for the financial depth. The analysis in this investigation offers relevant policy directives especially on the role of remittances in building stable FI of the sub-Saharan African economies and other developing states. [ABSTRACT FROM AUTHOR]

The relevance of this study is warranted by changes in the modern understanding of the interrelation between economic growth and financial depth. While earlier studies consider it to be universally positive, newer ones tend to challenge both nature and direction of such a relationship. This paper aims to investigate the nature of the financial depth-economic growth nexus in Ukraine during 2008–2019 based on data provided by the State Statistics Committee of Ukraine and the National Bank of Ukraine, using the standard OLS regression. The resulting model with an adjusted R squared of 0,96 confirms a strong (within a 90% confidence interval) linear relationship between real GDP per capita, denominated in local currency, which was used as a proxy for economic growth, and financial depth, which was assessed using three indicators: the share of bank loans to non-financial institutions in real GDP, the share of non-bank loans to non-financial institutions in real GDP, and the share of stock market capitalization in real GDP. Both bank and non-bank loans to real GDP ratios have a negative impact on economic growth (UAH 2,154 and UAH 78,154 decline per 1% growth, respectively), while market capitalization provides a positive influence (UAH 1,641,130 growth per 1% growth). This implies that, despite concentrating the majority of the resources available to the Ukrainian financial sector, the banking sector does not contribute to its economic growth. This can be alleviated by imposing additional restrictions on the amount of government securities allowed in a bank’s capital structure. AcknowledgmentsThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted at the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.

Financial depth is an important components of financial development for which determinants have been examined by a number of extant studies, using different kinds of financial depth indicators. This study aims at analyzing the factors that determine financial depth using the assets of mortgage and microfinance banks as indicators of financial depth. The study employs data that span from 1992 to 2021, using Autoregressive Distributed Lag (ARDL) model. It is found in the study that the policy of conversion of community banks to microfinance banks and the introduction of mortgage warehouse fund have positive effects on microfinance and mortgage banks' assets. Also, it is found that literacy rate has negative effect only on the microfinance bank assets. Thus, this study recommends further deepening of the various segments of financial system, policy makers should strengthen the existing policies and create the new similar policies and reforms with respect to each indicator of financial depth. [ABSTRACT FROM AUTHOR]

The research aims to study the relationship between financial depth and economic growth in Iraq during the period (2004-2020) by identifying the direction of each of the indicators of financial depth and economic growth, analyzing their developments, and measuring them using the ARDL model. Given that financial depth is an important indicator that shows the extent of the financial sector's contribution to economic activity by mobilizing savings and directing them towards investment to achieve added value from the activity of the various economic sectors. The research found the limited contribution of the financial sector in stimulating economic growth due to several subjective and objective factors that characterize the financial sector in the Iraqi economy. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to analyze the effect of financial depth in Islamic banks on income inequality in 33 provinces in Indonesia. Methodology – We use data for the period 2010-2018 from 33 provinces in Indonesia which are estimated using panel data to develop spatial panel data model. The dependent variable is income inequality, while the variable independent are Islamic regional financial depth, economic growth, human capital, and government expenditure. Findings – This research finds that Islamic Regional Financial Depth (FDS) has a positive and statistically significant direct effect on income inequality represented by Gini index. It means that an increase in the FDS will also cause an increase in the level of Gini index. In addition, the indirect effect of FDS on income inequality is also positive and significant, indicating that the ratio of financing to GRDP has a spillover effect on connected regions. Implications – This research recommends policymaker to expand the business of Islamic banking by financing the small medium enterprises and concern on the promotion of Islamic banking in the regional level. Originality – This study is potentially to contribute and be the early work which employs spatial analysis in the area of Islamic economics and finance. In addition, this study examines the impact of financial depth in Islamic bank on income inequality which is rarely discussed. Hence, this study presents relatively new information for policy makers, practitioners and researchers.

Copyright of Journal of Baghdad College of Economic Sciences University is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Research in Finance & Accounting is the property of Journal of Research in Finance & Accounting and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines the long-run and short-run growth effects of financial institutions depth in Nepal along with the sensitivity to the choice of proxy representing financial depth. Using annual time-series data for the period from 1980 till 2019, obtained from Quarterly Economic Bulletins published by Nepal Rastra Bank, the study employed autoregressive distribute lag (ARDL) model with bounds testing procedures to examine cointegration. Domestic credit to private sector, broad money supply, total deposits and financial institution's assets are used as proxies for financial institutions depth as indicated by World Bank. Real GDP is used to measure economic growth and the influence of macroeconomic environment is accounted by inflation and trade openness. The bounds tests found cointegration in economic growth functions and the regression results revealed that domestic credit to private sector performed better than other indicators in terms of its significant contribution to economic growth both in the long-run and the short-run. Money supply and financial deposits show significant positive contribution to growth in the long-run. The positive relationship of financial depth indicators with economic growth also supports the supply-leading (finance-led-growth) hypothesis in the long-run. Policies must be aimed at efficient allocation of affordable credit to profitable projects for short-run and long-run growth. Expansionary fiscal and monetary policy and long-term deposits are highly desirable for the long-run growth in Nepal. [ABSTRACT FROM AUTHOR]