Financial Sector Development, Openness, and Entrepreneurship: Panel Regression Analysis

Bayar, Yılmaz; Gavriletea, Marius Dan; Uçar, Zeki

doi:10.3390/su10103493

Cited by 25 publications

(17 citation statements)

References 42 publications

(51 reference statements)

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“…So far, no indictors are widely accepted as proxy variables of financial development due to their rich and complex connotation. Scholars adopt many different indicators according to their research objectives and the data availability [36][37][38][39][40]. In our research, we used the comprehensive index of financial development proposed by Svirydzenka [41] in the main regression, which allowed us to investigate the "aggregate" effect of financial development on carbon emissions.…”

Section: Datamentioning

confidence: 99%

The Impact of Financial Development on Carbon Emissions: A Global Perspective

Jiang

2019

Sustainability

207

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Financial development has been deemed to be an important factor influencing carbon emissions; however, the specific effect generated by financial development is still disputed. In this study, we examined the relationship between financial development and carbon emissions based on a system generalized method of moments and the data of 155 countries, and we further analyzed the national differences by dividing the sample countries into two sub-groups: developed countries, and emerging market and developing countries. The empirical results indicated that from a global perspective, financial development could significantly increase carbon emissions, and the analysis of the emerging market and developing countries reached the same conclusion; however, the results indicated that for developed countries, the effect of financial development on carbon emissions is insignificant. A series of robustness checks were conducted and confirmed that our empirical results were reliable. We suggest that policymakers in emerging market and developing countries should carefully balance financial development and environmental protection, as financial development will promote carbon emissions before countries reach a relatively high development level.

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Section: Datamentioning

confidence: 99%

The Impact of Financial Development on Carbon Emissions: A Global Perspective

Jiang

2019

Sustainability

207

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“…Domestic credit is the aggregate of liquid liabilities of financial systems and other claims on the private sector by the banking sector as a percentage of GDP. This is a standard measure of banking sector development (Ahmed & Bashir, 2016;Low et al, 2018;Bayar et al, 2018;Habibullah et al, 2017). This data is available in the World Bank Development Indicator, the International Financial Statistics, and IMF databases.…”

Section: Banking Sector Developmentmentioning

confidence: 99%

Foreign Remittances, Banking Sector Development and Private Sector Investment

Githaiga¹

2020

JBEES

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Purpose-This study seeks to investigate the impact of foreign remittances on private sector investment and the moderating role of banking sector development in Sub-Saharan African Countries. Research design, data, and methodology-The study has used a sample of 15 Sub-Saharan African countries and data for the years 1986 -2017. Data was obtained from the World Bank Development Indicator (WDI) Database. Panel data diagnostic tests were conducted to ascertain the suitability of the data for regression analysis. The data was analyzed through descriptive and inferential statistics, while the hypothesis was tested through hierarchical regression analysis. Results-The finding of this study indicates that foreign remittances and banking sector development had a significant and positive effect on private investment in Sub-Saharan Africa. Besides, the banking sector development significantly moderated the foreign remittances and private sector investment relationship. Conclusions-Based on the results, the study concludes that banking sector development has an important influence on foreign remittances and private sector investment nexus. Due to the antagonistic interaction between foreign remittance and banking sector development, the study recommends the use of alternative ways of channeling remittances to private investment such as; issuance of diaspora bonds and appeal for direct investment b y citizens living abroad.

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“…Recent trends show that there has been an increasing awareness of the role and the importance of entrepreneurship as a catalyst for economic growth and development. In specific, entrepreneurship is conceived as a major factor of production based on its importance in promoting growth, generating employment and driving innovation in the economy (Braunerhjelm, 2014; Bayar, Gavriletea and Ucar, 2018). However, despite the potentials of entrepreneurship to drive sustainable economic growth and development, its impacts, among the African countries, have not been felt.…”

Section: Introductionmentioning

confidence: 99%

Financial development and entrepreneurship: insights from Africa

Ajide

2022

JFRC

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Purpose One of the main obstacles to the flourishment of African entrepreneurship is financial constraint. Existing studies on the nexus between entrepreneurship and financial development are inconclusive, while the position of African economies remains unknown. The purpose of this paper is to empirically study the impact of financial development on entrepreneurship in Africa. Design/methodology/approach This study utilizes data of 20 selected countries in Africa over a period of 2006–2017. International Monetary Fund (IMF) data on broad-based financial development were combined with World Bank Entrepreneurship database. This study uses system generalized methods of moments (system GMM) technique and the recently developed dynamic panel threshold based on dynamic panel GMM. Findings The following findings emerged: financial development does not spur entrepreneurship in Africa; there is a threshold at which financial development improves the level of African entrepreneurship; and the tendency of financial development to improve the level of entrepreneurship is conditioned on conducive business regulation and strong institutional quality at a specific threshold value. Originality/value This is one of the few studies that examines the impact of financial development on entrepreneurship in Africa. This study shows that the financial development relies on the effectiveness of regulatory environment to extend loan and other financial services to new firm entrants. In addition, the results of this study reveal that the assumption of linearity in the nexus between finance and entrepreneurship is not tenable for the case of Africa. Therefore, policymakers should keep on developing African financial system to accelerate the pace of entrepreneurship development.

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Financial Sector Development, Openness, and Entrepreneurship: Panel Regression Analysis

Cited by 25 publications

References 42 publications

The Impact of Financial Development on Carbon Emissions: A Global Perspective

The Impact of Financial Development on Carbon Emissions: A Global Perspective

Foreign Remittances, Banking Sector Development and Private Sector Investment

Financial development and entrepreneurship: insights from Africa

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