Does Financial Permeation Promote Economic Growth? Some Econometric Evidence From Asian Countries

Siddik, Md. Nur Alam; Ahsan, Tanveer; Kabiraj, Sajal

doi:10.1177/2158244019865811

Cited by 21 publications

(16 citation statements)

References 42 publications

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“…This supports the SLH articulating ICT diffusion to be a mandatory prerequisite for growth and is consistent with the study of Chakraborty (2009), Mehmood and Siddiqui (2013), and Shahiduzzaman and Alam (2014). Similarly, unidirectional causality running from financial sector development to economic growth was obtained in accordance with the supply lending hypothesis (SLH) akin to the studies of Caporale et al (2014), Sehrawat and Giri (2015), Patra andDastidar (2018), andSiddik et al (2019). In addition, the empirical results suggest absence of causality among financial sector development and ICT diffusion.…”

Section: Results and Interpretationssupporting

confidence: 88%

“…This is in accordance with the study of Chakraborty (2009), Mehmood and Siddiqui (2013), and Shahiduzzaman and Alam (2014). Similarly, the existence of unidirectional causality was observed financial sector development and economic growth akin to the existing studies of Caporale et al (2014), Sehrawat andGiri (2015), Patra andDastidar (2018), andSiddik et al (2019). This implies that, financial sector development is a primal for growth in these countries.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 90%

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ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries

Verma

Giri

2020

Journal of Public Affairs

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This study examines the interrelation of ICT diffusion and financial development with economic growth in SAARC economies, by employing data for the time period 2000–2017. The empirical analysis is carried out using granger causality and cointegration techniques. First generation panel unit root tests namely LLC, IPS, ADF, and PP test were employed for this purpose. All the variables were found to be integrated of order one at first difference. Pedroni's cointegration test along with Kao's residual‐based cointegration test was used which reveals the presence of long‐run relationship among the variables. Further, cointegration coefficients are computed with the help of fully modified ordinary least squares and dynamic ordinary least squares method. While financial development, ICT diffusion, and trade openness were found to increase the growth rate, inflation exhibited negative impact on growth. Both short‐run and long‐run causality were examined using panel granger causality test which revealed unidirectional causality running from ICT diffusion and financial sector development to economic growth. However, the result of causation between financial sector development and the ICT diffusion was statistically insignificant.

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Section: Results and Interpretationssupporting

confidence: 88%

Section: Conclusion and Policy Implicationssupporting

confidence: 90%

ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries

Verma

Giri

2020

Journal of Public Affairs

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“…Simply, because, some economists have argued through their empirical results that corruption affects economic development through its negative effects on employment, poverty and financial system (Cooray and Schneider, 2018), but financial inclusion is a policy affording the poor an effective and efficient access to credit, savings and effective payment systems, including easy access to insurance services through formal financial systems (World Bank, 2011; Johnson and Williams, 2016). It is a policy goal in many regions including Africa (Siddik et al , 2019; Ozili, 2020). It is capable of bringing huge amounts of income into individual pulse, which creates different opportunities in the economy.…”

Section: Introductionmentioning

confidence: 99%

Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

Ajide

2020

IJSE

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PurposeThe purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.Design/methodology/approachThe study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.FindingsThe author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.Practical implicationsThe finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.Originality/valueThis study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.

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“…Since most of the rural people live in villages, providing different financial services to these people are very expensive, in part, because they have small amounts of money, often live in sparsely populated areas and few recorded credit records. In this situation, different DFSs have brought with blessings in China to develop their inclusive finance to promote their financial accessibility and inclusive growth (Siddik, 2019; Siddik, Ahsan, & Kabiraj, 2019; Siddik & Kabiraj, 2020). Whatever, FinTech is not a new concept in China.…”

Section: Resultsmentioning

confidence: 99%

Promoting China’s Inclusive Finance Through Digital Financial Services

Hasan

Khan

2020

Global Business Review

106

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While much progress has been made in promoting inclusive finance through the ownership of a basic personal account, billions of people in developed and emerging markets are still underrepresented in financial services. Also, they are unable to contribute to the provision of better access to financial services. The purpose of this study was defined as to explore the contribution of digital financial services (DFSs) in promoting inclusive finance in China. This study presents a theoretical discussion on how DFSs play an important role in promoting China’s inclusive finance. This study uses the systematic review method of qualitative sampling to achieve the goal of this study. Different forces play different roles behind the promotion of inclusive finance. However, DFSs are considered to be one of the most influential forces in the development of inclusive finance in the present world. Many examples of how DFS can improve inclusive finance are discussed in the literature. In addition, different contributions to DFS usage are presented here to achieve the objectives of this study. The contents of the study contributed to a better understanding of the practical impact and implication of DFS tools in transforming the financial sector. In this study, first, a structured review method is followed; second, most important discussion on the contribution of DFS in promoting inclusive finance is presented and third, the relation between the topic and related research is identified.

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Does Financial Permeation Promote Economic Growth? Some Econometric Evidence From Asian Countries

Cited by 21 publications

References 42 publications

ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries

ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries

Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

Promoting China’s Inclusive Finance Through Digital Financial Services

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