Financial market development, global financial crisis and economic growth: evidence from developing nations

Ahmad, Rodina; Etudaiye-Muhtar, Oyebola Fatima; Matemilola, Bolaji Tunde; Bany‐Ariffin, A.N.

doi:10.1007/s10258-016-0123-8

Cited by 20 publications

(18 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Besides, its interaction with financial crisis has not significantly influenced the economic growth in the long run. The outcomes of the present study are consistent with the earlier studies, where stock market capitalization and banking sector development has a positive impact and their interaction with financial crisis has a negative impact on economic growth (Ahmad et al, 2016). Apparently, due to the lack of integration or openness of banking sector in South Asia, the negative impact of banking sectors’ interaction with financial crisis might have been reduced in the long run (Brunschwig et al, 2011).…”

Section: Resultssupporting

confidence: 92%

“…Furthermore, the outcomes of models (1) and (2) suggest that inflation, trade openness, investment and government consumption expenditures have a positive effect on GDP growth in the long run. The positive and significance association of trade openness, investment and government consumption expenditure with GDP growth confirms the outcomes of earlier studies (Ahmad et al, 2016; Loayza & Ranciere, 2006).…”

Section: Resultssupporting

confidence: 89%

“…Furthermore, by averaging the coefficients, PMG estimates the pooled data as a system and provides the common coefficients for the long run. Using per capita GDP growth as a dependent variable, equation (1a) and (1b) provide the baseline framework for this study (Ahmad et al, 2016; Murari, 2017; Sharma et al, 2018a): …”

Section: Methodsmentioning

confidence: 99%

“…In other words, both, i.e. financial development and GDP growth, have tendency to affect each other in the long run (Ahmad et al, 2016).…”

Section: Review Of Literaturementioning

confidence: 99%

See 3 more Smart Citations

Linkages between Financial Development and Economic Growth in the Middle-Income Countries of South Asia: A Panel Data Investigation

Sharma

Kautish

2020

Vision

View full text Add to dashboard Cite

The present study intends to investigate the impact of financial sector development on GDP growth in the four middle-income countries of South Asia over the period of 1990–2016. Using pooled mean group (PMG) estimation, this study tries to examine whether in these developing countries, GDP growth has been influenced by size of market capitalization and size of market turnover in the long run which are used as proxy for stock market development. Similarly, domestic credit to private sector is used as proxy for banking sector development while assessing its long-run impact on GDP growth. Furthermore, by incorporating a dummy variable for the global financial crisis (2007–2008), this study investigates whether these economies are vulnerable to external shocks or not. The outcomes of this study find that relatively, the impact of banking sector on GDP growth has remained low in the region. Nevertheless, the development in both sectors has positively influenced economic growth in the long run. The outcomes of this study suggest that both, i.e. stock market and banking sector, are vital determinants of long-run economic growth in the South Asian countries. Therefore, to achieve the sustainable growth, policymakers need to adopt the global approach which can be ensured by improving the quality and scope of financial services in these countries.

show abstract

Section: Resultssupporting

confidence: 92%

Section: Resultssupporting

confidence: 89%

Section: Methodsmentioning

confidence: 99%

“…In other words, both, i.e. financial development and GDP growth, have tendency to affect each other in the long run (Ahmad et al, 2016).…”

Section: Review Of Literaturementioning

confidence: 99%

See 2 more Smart Citations

Linkages between Financial Development and Economic Growth in the Middle-Income Countries of South Asia: A Panel Data Investigation

Sharma

Kautish

2020

Vision

View full text Add to dashboard Cite

show abstract

“…Economic theory explained that financial innovation accelerated financial development with fostering an efficient financial system and accelerating economic movement (Chou and Chin 2011;Beck et al 2014). On the other hand, proxy variables of stock market development also show a positive influence with statistical significance as well, which is in line with Kajurová and Rozmahel (2016); Caporale et al (2004); Masoud (2013); Ahmad et al (2016); Tachiwou (2010); Nyasha and Odhiambo (2016). It is implying that market-based financial developments will lead to sustainable economic growth in the long run by ensuring an efficient financial sector, easy access to financial institutions, the emergence of diversified financial institutions, capital accumulation, and the adequacy of long-term capital.…”

Section: Findings and Conclusionsupporting

confidence: 78%

Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model

Qamruzzaman

Jiang

2018

IJFS

View full text Add to dashboard Cite

This study aims to explore the relationship between economic growth, financial innovation, and stock market development of Bangladesh for the period 1980–2016. To investigate long-run cointegration, this study used the autoregressive distributed lagged (ARDL) bounds testing approach. In addition, the Granger-causality test is used to identify directional causality between research variables under the error correction term. Study findings from the ARDL bound testing approach confirm the existence of a long-run association between financial innovation, stock market development, and economic growth. Furthermore, the findings from the Granger-causality test support bidirectional causality between financial innovation, economic growth and stock market development, and economic growth both in the long run and short run. These findings support the theory that market-based financial development and financial innovation in the financial system can spur economic development.

show abstract

The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis

Anwar

Iwasaki

2022

Int. J Fin Econ

View full text Add to dashboard Cite

By taking 1417 estimates from 96 studies and applying advanced meta‐analysis techniques, this study compares the effect size of financial development (FD) and liberalization on economic growth in the Middle East and Africa. We find that the overall finance–growth nexus is positive, yet its effect size differs across regions. Indeed, finance has a larger growth‐enhancing effect in the sub‐Saharan Africa (SSA) region than in the Middle East and North Africa region. This finding is supported by meta‐regression analysis that controls for various study conditions simultaneously. Moreover, we uncovered that the extracted estimates contain evidence of the true effect size of FD and liberalization on growth in the extant literature and SSA studies.

show abstract

Financial market development, global financial crisis and economic growth: evidence from developing nations

Cited by 20 publications

References 37 publications

Linkages between Financial Development and Economic Growth in the Middle-Income Countries of South Asia: A Panel Data Investigation

Linkages between Financial Development and Economic Growth in the Middle-Income Countries of South Asia: A Panel Data Investigation

Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model

The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis

Contact Info

Product

Resources

About