Financial development and economic growth in Latin America: Is Schumpeter right?

Bittencourt, Manoel

doi:10.1016/j.jpolmod.2012.01.012

Cited by 145 publications

(96 citation statements)

References 44 publications

(27 reference statements)

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“…This additional second proxy for financial development, given that Gdppc is already a viable alternative to our first proxy, F indev, is an attempt to follow the recommendations of Levine (2005) and Boyd and Jalal (2012) that empirical measures of financial development should directly measure financial functions performed by the financial system. The PCA allows us to reduce the dimensionality of the set of variables to be included in our empirical analysis, whilst still retaining most of the informational content offered by these same variables (Bittencourt, 2012). It also aids in ensuring a more stable computational environment (Jolliffe, 1982).…”

Section: Datamentioning

confidence: 99%

Tax evasion, financial development and inflation: Theory and empirical evidence

Bittencourt

Gupta

Stander

2014

Journal of Banking & Finance

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Using a standard overlapping generations monetary production economy, faced with endogenously determined tax evasion by heterogeneous agents in the economy, we provide a theoretical model that indicates that both a lower (higher) level of financial development and a higher (lower) level of inflation leads to a bigger (smaller) shadow economy. These findings are empirically tested within a panel econometric framework, using data collected for 150 countries over the period 1980−2009 to enable a broad generalisation of the results. The results support the developed theoretical model, even after having accounted for the differences in the levels of economic development, the level of institutional quality that includes different tax regimes and regulatory frameworks, central bank participation in the economy as well as different macroeconomic policies.JEL Classification: C61, E26, P16 Keywords: Informal economy, financial development, inflation. * We would like to thank two anonymous referees for many helpful comments that tremendously improved the quality of the paper. However, any remaining errors are solely ours.

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Section: Datamentioning

confidence: 99%

Tax evasion, financial development and inflation: Theory and empirical evidence

Bittencourt

Gupta

Stander

2014

Journal of Banking & Finance

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“…First direction of causality from financial development to economic growth is labeled as "supply-leading" hypothesis and second direction of causality from economic growth to financial development is labeled as "demandfollowing" hypothesis (Liu and Calderon, 2003). Similarly while findings of King and Levin (1993), Levine et al (2000), Bittencourt (2012) support to the supply-leading hypothesis, the findings of Gurley and Shaw (1967), Goldsmith (1969) and Jung (1986) advocate demand-following hypothesis (Hassan et al, 2011). In contrast above two, Demetriades and Hussein (1996), Greenwood and Smith (1997), Blackburn and Hung (1998) believe that economic growth and financial development can complement each other making financial deepening and real economic growth mutually causal where there would be bi-directional causality between financial development and economic growth.…”

Section: Introductionmentioning

confidence: 99%

The Relationship Between Bank Loans And Economic Growth In Turkey: 1995-2010

Zortuk¹,

Çelik²

2015

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In this study, we aim to determine the direction of the relationship between the economic growth and total credits of Turkish Banks. Accordingly, we analyzed this relationship for the period 1995-2010, by using quarterly data analysis. In the analyses as variables, change in the volume of real credits to represent the variable, total credits; and real growth in GDP represents the variable, growth. This study uses Unit Root Test and Gregory-Hansen (GH) Cointegration test as econometric methods. As a result of the analysis and evaluations, it was found that there exists a cointegrating relationship between relevant variables. Keywords: Bank Loan (BL), Economic Growth (EG), Zivot-Andrews Breakpoint Test (ZABT), Gregory-Hansen(GH) Cointegration test Jel Code: C4, E51, E43 ÖzetBu çalışmanın amacı, ekonomik büyüme ve Türkiye'deki Bankalarının toplam kredileri arasındaki ilişkinin yönünü belirlemektir. 1995-2010 dönemine ait üçer aylık verilerin kullanıldığı analizlerde, kredi hacmindeki değişim değişkeni, toplam kredileri temsil etmekte ve GSYİH reel büyüme değişkeni de, büyümeyi temsil etmektedir. Söz konusu iki değişken arasındaki uzun dönemli ilişkinin araştırılmasında Gregory-Hansen (GH) Eşbütünleşme testi kullanılmış ve analiz sonuçlarına göre ilgili değişkenler arasında eşbütünleşme ilişkisinin mevcut olduğu tespit edilmiştir.

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“…Due to the important role of innovation to economic development, as explained by Schumpeter [21] which is also supported by studies about innovation in the service industry [22]- [24], the null hypothesis underlying the study is that innovation has significant relationship with the tourism demand to a group of European countries, regardless of the inflation pressure.…”

Section: The Study and Methodologymentioning

confidence: 71%

Innovation, Tourism Demand and Inflation: Evidence from 14 European Countries

Yong¹

2014

JOEBM

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Abstract-The purpose of the paper is to investigate how inflation have altered the contribution of innovation to the tourism demand to the European countries during the last few decades. A hypothesis is proposed to prove that innovation of highly innovative countries in promoting their tourism industry. In addition, it is to assess how this relationship has been altered by the costs of inflation in the countries. Based on the recent Global Innovation Index (GII), 14 European countries are chosen as sample, while these countries have been incurring the inflation over the sample period, 1988-2010. A fixed-effect panel data framework is estimated with the Feasible Generalized Least Squares method with bias correction. The study utilizes innovation indicator to access the impact of costs on innovation to the tourism sector. To ensure robustness of estimation, the study focuses on the sensitivity of estimation with respects to the time lag by estimating the models with sufficient number of time lag, while also ensuring the sufficient degree of freedom for the estimation. The result supports the hypothesis that the countries have increasingly stronger position of innovation to the tourism industry and this benefit is not altered by the inflation pressure occurred in the countries.

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Financial development and economic growth in Latin America: Is Schumpeter right?

Cited by 145 publications

References 44 publications

Tax evasion, financial development and inflation: Theory and empirical evidence

Tax evasion, financial development and inflation: Theory and empirical evidence

The Relationship Between Bank Loans And Economic Growth In Turkey: 1995-2010

Innovation, Tourism Demand and Inflation: Evidence from 14 European Countries

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