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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., (© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

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]

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]

This article examines the evolving finance–inequality nexus during the process of economic transition. We estimate the varying marginal effects of financial depth on income inequality in every state of the transition process. Using China as an example of transition economies, we establish the causal effects of financial depth on urban income inequality and examine the estimation biases when the evolving relationship is not appropriately characterized. Along the transition process of the Chinese economy, we identify a robustly asymmetric and roughly inverted‐L shaped relationship between financial depth and urban inequality. We find that financial depth alone accounts for 11–28% of the overall variations of urban income inequality and the marginal impacts of financial depth change with the degree of credit constraint, the fraction of state ownership, and the level of economic development. [ABSTRACT FROM AUTHOR]

The paper deals with the study of global financial transformations impact on the financial sector in Poland. Two types of tendencies of the global financial space development that create new conditions for national financial systems are defined, including: trends that lead to qualitative shifts in countries' financial systems and do not necessarily imply a negative impact on the national financial systems; threatening challenges that shatter financial markets and restrain their sustainable development. The current positions of Poland's financial sector in the world and regional financial systems are evaluated. The shifts in the national financial sector in terms of global financial transformations are found out. It is stated that while integrating into the global financial space, Poland will increasingly feel the impact of global transformations that will determine further scenarios for the domestic financial sector development. Exogenous factors that can aggravate challenges threatening the stability of Poland's financial sector in the near future are identified. [ABSTRACT FROM AUTHOR]

Income inequality has increased in China despite rapid economic growth. Income inequality could impinge on future development, leading to social tension or political instability. Our study investigates the short‐run and long‐run relationship between three important macroeconomic indicators—income inequality, economic growth and financial depth. We utilise a two‐step procedure of ARDL bounds and Granger causality for the analysis. The bounds test indicates the presence of a cointegrating relationship between income inequality, financial depth and economic growth in the long run. In the second step, we utilise the Granger causality approach. Results show a bidirectional causality between financial depth‐growth and a unidirectional causality between inequality‐growth in the short run. In the long run, results reveal that growth and financial depth determine Gini. Our findings provide support for the inequality‐widening effect due to economic growth and higher credit provided to the private sector. We find no evidence of inequality‐narrowing or income‐equalising effect in the long run for the period of study. It is possible that the government's inclusive growth policies which started less than a decade ago have not taken effect for us to capture the inverted U‐shape income equalising effect significantly. [ABSTRACT FROM AUTHOR]

We analyze the simplest possible model of endogenous growth to account for the role of financial development. In our setting, financial development affects productivity and determines the amount of resources subtracted to capital investment. We show that under very general assumptions, the relation between economic growth and financial depth is nonmonotonic, and eventually bell-shaped. We empirically assess our results in a framework that allows to distinguish between long-run and short-run effects. We establish a cointegrating relation and derive the long-run elasticities of per capita gross domestic product (GDP) with respect to employment, the physical capital stock, and financial depth–relying on linear as well as nonlinear models for the finance-growth nexus. We employ the results of the first step estimation to specify an error–correction model and find that there is strong evidence for a nonlinear relationship between financial depth and per capita GDP, consistently with what was predicted by our theoretical model. [ABSTRACT FROM AUTHOR]

There has been renewed interest in the link between financial development and trade amongst researchers. Financial development is a multifaceted concept that encompasses several dimensions; however, there is very limited empirical work on how these dimensions interact with international trade. This study offers insights into the link between financial depth (a dimension of financial development) and international trade utilising data from China's trade flows with 145 trading partners between the years 2000 and 2016. Employing the FGLS estimation approach, this study concludes the following: (1) Financial depth significantly influences China's international trade flows, with the direction of impact depending on the indicator of financial depth employed. (2) Remittances augment financial development in China and significantly influence international trade flows. (3) Banking crises in China's trading partner economies have a significant negative impact on trade flows. (4) Strategic economic partnerships particularly trade agreements play a positive role in enhancing China's trade flows. [ABSTRACT FROM AUTHOR]

This research examined the impact of banking system stability on the Nigerian economy alongside key macroeconomic variables. The study employed banking stability index, return on assets, financial depth and interest rate, while real GDP was used to capture economic growth, using annual data from 1986 to 2016. The Augmented Dickey Fuller (ADF) and Phillip Perron (PP) tests reveals that apart from interest rate, all other variables were stationary at first difference. The Bounds test to cointegration confirms the existence of a longrun relationship amongst the variables considered for the study. The ARDL results suggests that in both long and short-run estimations that a rise in banking sector stability, financial depth and return on assets will lead to an increase in economic growth, conversely, an increase in interest rate will result to a fall in economic growth. Finally, we recommend that regulators improve both the micro-prudential and the macro-prudential supervision of the banking industry, while an upward review of the current minimum capital base has become imperative owing to the effect of inflation and fall in the country's exchange rate. [ABSTRACT FROM AUTHOR]

In this paper, we have tried to quantify development aspects of the financial sector that ensures price as well as financial stability. Economic development, its volatility as well as non-linear relation between price and financial stability were investigated. Standard panel regression methods were conducted using data obtained from 64 developed and developing countries for the sample period of 2000-2017. Considering the importance of the banking sector in developing countries, we have also tried to quantify the optimal size of the banking sector in the context of Azerbaijan. Results show that, in countries where financial intermediation was weak rising financial depth is positively correlated with economic growth. Up to optimal point, loan-to-GDP ratio positively impacts economic growth and afterwards negatively. Currently financial sector is bank-based and accordingly banks play important role in the financial markets. [ABSTRACT FROM AUTHOR]

Abstract: This article examines the relationship between foreign bank entry and financial development in a panel framework covering 57 emerging market and developing economies (EMDEs) between 1995 and 2009. Using various measures of financial sector deepening, the article also explores the degree to which the relationship between foreign bank entry and financial sector depth varies by different income thresholds of the EMDEs. The empirical findings suggest that while foreign banks have a direct positive impact in furthering financial depth, the marginal effects of foreign bank entry diminish over time with greater levels of economic development. In other words, the impact of foreign bank entry tends to diminish as the per capita income of the country rises. [ABSTRACT FROM AUTHOR]

The study examines the relationship between financial sector development and economic growth of Pakistan for a period from 1981 to 2015.Using annual time series data, an econometric model is developed on the basis of theoretical frame work in line with previous research. To capture various dimensions of financial development an index is constructed by PCA technique through utilizing relevant proxies of financial sector development. ARDL bound testing approach is applied to identify long run relationship and short run dynamics between financial development and economic growth. Other econometric tests conducted to test stability and reliability of the model. Findings of the econometric estimation reveal that a significant long run association exists among the variables while financial depth and rate of investment have positive significant effect on economic performance of the country. Results reflect the importance of financial sector development for economic growth of Pakistan and draw attention of policy makers for further strengthening the financial sector of Pakistan. [ABSTRACT FROM AUTHOR]

This paper examines the causal relationships between insurance market activities, economic growth, financial depth, and government consumption expenditure. We utilize a panel vector autoregressive model to test Granger causality for 18 middle-income countries over 1980-2012-a group that has not been previously studied in this literature. The results show a robust long-run economic relationship between insurance market activities, economic growth, financial depth, and government consumption expenditure. Moreover, in the short run, we find bidirectional causality between financial depth and economic growth, between financial depth and government consumption expenditure, and between insurance market activities and government consumption expenditure. Unidirectional causality exists from insurance market activities to economic growth, from financial depth to insurance market activities, and from government consumption expenditure to economic growth. [ABSTRACT FROM AUTHOR]

The article investigates causal relationships between internet penetration rates, financial depth and per capita economic growth in the Next-11 countries. Using panel vector autoregressive (VAR) approaches, our empirical results show that these variables are cointegrated. Moreover, we find bidirectional causality between internet penetration rates and economic growth, and between financial depth and economic growth in the short run. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is motivated by research-based assertions that: the causes of economic growth in countries like India are not well understood; they are not elucidated by using simple bivariate relationships between economic growth and other variables, taken one at a time; and dynamic linkages between growth, trade openness and financial sector depth are required for any comprehensive treatment of this inquiry. Design/methodology/approach – This paper investigates the pivotal role of financial depth (defined as the relative importance in the economy of the banking sector or the stock market) and whether it bears any evidential relationship to trade openness and economic growth during the era of Indian post-globalization since 1990. Two key objectives are to uncover whether there is a long-run relationship between the variables and whether they can be said to cause one another. Autoregressive distributive lag (ARDL) bounds testing procedures and vector autoregressive error correction model (VECM) approaches were used to derive the results. Findings – This paper affirms that the variables are indeed formally cointegrated. It was also found that trade openness, economic growth and financial sector depth Granger-cause each other. Practical implications – This paper demonstrates that greater trade openness can predictably accelerate India’s economic growth. If policymakers wish to maintain sustainable economic growth in India, they can do so by encouraging both freer trade and financial market development in the long run. Originality/value – No investigation of this type and sophistication has hitherto been performed for India. The methods developed for this study can also be applied to any of the vast range of countries for which dynamic growth-openness-financial depth interactions have not already been investigated. [ABSTRACT FROM AUTHOR]

Copyright of Çankırı Karatekin University Journal of the Faculty of Economics & Administrative Sciences is the property of Cankiri Karatekin University, Faculty of Economics & Administrative Sciences 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 Revista Criterio Libre is the property of Revista Criterio Libre 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.)

In this paper we examine the dynamic relationship between interest rate reforms and economic growth in Tanzania using two tests. In the first test, we examine the impact of interest rate reforms on financial deepening using a financial deepening model. In the second test, we examine whether the financial deepening, which results from interest rate reforms, Granger-causes economic growth - using a trivariate model. The empirical findings of our results reveal that there is a significant positive relationship between interest rate reforms and economic growth in Tanzania. However, the results fail to find any support for finance-led growth. [ABSTRACT FROM AUTHOR]

This study purpose is to connect the proxy of financial development which is total banking sector’s deposits with the economic growth in North Cyprus. The reason for using the total deposit differently with the existing literature is because North Cyprus is bank-based financial system. Therefore, this study provides an analysis of the connection between finance-growth nexus in North Cyprus from 1978 through 2015, using the autoregressive distributed lag (ARDL) model and combined cointegration to evaluate and verify the relationship. In addition, this research added the inflation rate to the model specification to investigate the inflation-growth interaction. The results revealed that both methods of cointegration provided robust evidence for a long-run relationship between financial debt and growth. The ARDL long-run and short-run coefficients showed the positive impact of depth and the negative impact of inflation on economic growth, thereby confirming the strength of the finance-growth and inflation-growth connections. Moreover, financial depth had a larger coefficient than the inflation rate. Finally, the VECM Granger causality test provided evidence for unidirectional causality from the total deposits and inflation rate to economic growth in North Cyprus. These results are significant for the policymakers of North Cyprus because the findings show that economic growth can be improved by enhancing the deposit rates in the financial system. [ABSTRACT FROM AUTHOR]