Causal Link Between Financial Development  and Economic Growth: The Case of Transition Countries

Oskonbaeva, Zamira

doi:10.18371/fcaptp.v3i26.121844

Cited by 7 publications

(3 citation statements)

References 11 publications

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“…In contrast, privatisation and entry of foreign investors can increase this effect. Oskonbaeva (2018) investigates the causal relationship between financial development, trade openness and economic growth based on empirical analysis of 9 transition countries (Ukraine, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova and Tajikistan) over the period 1998 to 2015 suggest that there is evidence of a bidirectional causality between financial development and economic growth in the short-run.…”

Section: Theory: Importance Of the Financial Market To The Local Economymentioning

confidence: 99%

The Impact of the Local Financial Market on Economic Growth: A Case Study of Kazakhstan

Nichkasova¹,

Nežinský²,

Vasylieva³

2022

EoR

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Kazakhstan’s financial market has always been the focus of the government attention as an important element of country development. Therefore, the main goal is to build a well-developed, competitive and trustworthy financial market that has a dominant influence on the economy and sustainable development. Nevertheless, this statement is true for economies that have reached a certain level of development. For countries with economies in transition, achievement of a significant level of economic growth is a prerequisite for the formation of a stable capital market and banking system, that will subsequently have a significant positive impact on economic growth. This study investigates the relationship between the local financial market and economic growth for Kazakhstan based on measures of economic growth and its components, as well as empirical indicators of banking development and stock market — size, liquidity and volatility — used as control variables that determine Kazakhstan’s economy. Time series regression analysis and Granger causality test was performed for data from 1994 to 2017 in order to design country-specific measures for financial development. The results confirmed the profile of Kazakhstan’s economy by showing that world oil prices and total investment are the most powerful factors influencing economic growth. The direction of causation for Kazakhstan comes from economic growth towards the development of the local financial market, contrary to the postulate that the development of a financial intermediary stimulates economic growth. Therefore, at this stage, the financial sector does not stimulate the economic development of Kazakhstan, but rather the economic growth based on oil production and export is a catalyst for the development of the financial sector. It should be recommended to Kazakhstan’s government to shift the focus from financial market to economic development in order to mobilise sufficient volumes of domestic and international investments to transform the economy and make a transition to sustainable growth.

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Section: Theory: Importance Of the Financial Market To The Local Economymentioning

confidence: 99%

The Impact of the Local Financial Market on Economic Growth: A Case Study of Kazakhstan

Nichkasova¹,

Nežinský²,

Vasylieva³

2022

EoR

View full text Add to dashboard Cite

show abstract

“…Oskonbaeva [73], research the causal relationship between financial development, trade openness and economic growth. The empirical analysis of this study consists of panel data of 9 transition countries (Ukraine, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, and Tajikistan) in the period 1998-2015.…”

Section: Ang and Mckibbinmentioning

confidence: 99%

Financial Development and Economic Growth: Evindence From Azerbaijan

Mammadov

Ahmadov

2021

Wseas Transactions on Business and Economics

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The impact of financial development on economic growth has always been an important issue. Especially when financial crises occur, the relationship between financial markets and financial crises and economic activities is on the agenda. The main purpose of this study is to determine the relationship between financial development and economic growth in the Azerbaijani economy. For this purpose, VECM model estimation and Granger causality analysis was performed by taking monthly data between 2005-2019. As a result of the analysis, it was revealed that there is a two-way relationship between financial development and economic growth in Azerbaijan

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“…Financial markets do not function indirectly from the economic system, which forms the basic conditions for their development. Analysis of the factors of the economic development of Kazakhstan was conducted by a number of researchers (Aizhan and Makaevna, 2011;Khoich, 2012;Akimov and Dollery, 2008;Facchini, 2013;Kalyuzhnova and Patterson, 2016;Kalyuzhnova, 2011;Mukhamedzhanova and Medebayeva, 2018;Mukhtarova et al, 2018;Oskonbaeva, 2018;Shahbaz et al, 2017). The period from 1991 to 2018 is characterised by the implementation of a number of institutional reforms aimed at shaping the market economy.…”

Section: Introductionmentioning

confidence: 99%

Conceptual model for managing sustainable development of the financial market based on fuzzy cognitive maps: case study of Kazakhstan

Nichkasova

Sadvokassova

Kayupov

2021

IJEPEE

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Kazakhstan's financial market, being relatively small in size, does not have the ability to compensate for the needs of economic entities for financing development through market mechanisms. Therefore, a decision support tool is needed to ensure continued growth. The solution was to use a fuzzy cognitive map and a method for constructing indicators of the system's sustainable development which included a set of three types of subsystem: economic, financial institutions, and financial markets. The sample, containing data from between 1993 and 2018, uses 31 indicators of the economic development of Kazakhstan to reflect the ability of the system to develop in terms of depth, accessibility, efficiency, stability, integration, innovation, and cognitive approach of the economic agents. The current state of the financial market for the period up to 2025 indicates initial shallow depth and slow progress requiring increased investment, GDP growth and reduced inflation to stimulate its development.

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Causal Link Between Financial Development and Economic Growth: The Case of Transition Countries

Cited by 7 publications

References 11 publications

The Impact of the Local Financial Market on Economic Growth: A Case Study of Kazakhstan

The Impact of the Local Financial Market on Economic Growth: A Case Study of Kazakhstan

Financial Development and Economic Growth: Evindence From Azerbaijan

Conceptual model for managing sustainable development of the financial market based on fuzzy cognitive maps: case study of Kazakhstan

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