Macroeconomic aspects of financial liberalization

Mirdala, Rajmund

doi:10.2298/pan0604439m

Cited by 8 publications

(5 citation statements)

References 9 publications

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“…Furthermore, Capital Account Openness positively impact Industrial Growth but only in countries with relatively well-developed financial systems, rule of law, strong creditor rights and good accounting standards. The study further recommended certain threshold level of institutional and economic development in order to achieve benefit from capital account liberalization (Eichengreen et al 2011;Klein and Olivei 2008;Mirdala 2006). In addition to this Honohan (2004) evidenced infrastructure stability as a catalyst for Industrial Development.…”

Section: Empirical Literature Reviewmentioning

confidence: 87%

Determinants of industrial development: a panel analysis of South Asian economies

et al. 2018

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A well performing industrial sector plays an important role in poverty mitigation, unemployment reduction, trade promotion, exchange of goods and services, increased per capital income and GDP growth etc. Numerous studies have investigated the institutional financial performance and their outcomes for emerging states predominantly in perspective of South Asian and African economies. Nonetheless, after global financial crisis and fall of Bretton wood system a new debate was generated to re-examine the issue after implementa-development of South Asian region economies. The study also discussed the models from policy perspective and provides recommendations for the policy makers to improve or redesign favorable policies based on findings.

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Section: Empirical Literature Reviewmentioning

confidence: 87%

Determinants of industrial development: a panel analysis of South Asian economies

et al. 2018

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“…Financial liberalization also has an indirect effect on growth. By strengthening and fostering development of the domestic financial sector through imposing discipline on macroeconomic policies, it can lead to a more stable macroeconomic environment (Mirdala, 2006;Ahmed, 2010 The following hypothesis will be tested at 5% level of significance:…”

Section: Data and Variablesmentioning

confidence: 99%

Causality between Foreign Portfolio Inflows and Economic Growth: Evidence from China and India

Ahmad¹,

Yang²,

Draz³

2015

IJEF

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The objective of this paper is to examine the causal relationship of foreign portfolio inflows and economic growth for two Asian economies, i.e. China and India. We have used Granger causality test for both countries' data ranging from 2001 to 2013 and concur with the findings of Durham (2003) and Duasa and Kassim (2009), i.e. there is no direct causality between foreign portfolio inflows and economic growth. Our results also suggest an indirect relationship between foreign portfolio inflows and economic growth of China and India.

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“…On the other hand, the mechanism through which financial liberalization generates a net positive effect remains less conclusive. It has been suggested that financial and other capital liberalization will directly encourage flows of funds from capital-rich economies to capital-poor economies (Mirdala, 2006). Financial liberalization also has an indirect effect on growth.…”

Section: Introductionmentioning

confidence: 99%

Financial liberalization, financial development and growth linkages in Sub‐Saharan African countries

Ahmed

2010

Studies in Economics and Finance

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Purpose -The purpose of this paper is to use the recent development in unit root tests and cointegration as applied to panel data and dynamic time series, to estimate the relationship between financial liberalization, financial development and growth. Design/methodology/approach -The paper assesses the dynamics of the relationship between financial development, financial liberalization and growth using the latest dynamic panel data framework and time series analyses comprising up to 15 Sub-Saharan African countries with annual observations over the period of 1976-2005. The research uses various measures of, or proxies for, financial intermediary development, including ratio of private sector credit and share of domestic credit to income. Findings -The results obtained from a heterogenous panel investigation and time series methodology such as Granger causality, indicate a long-run equilibrium relationship between financial development and economic growth. This is consistent with the view that financial development can act as an "engine of growth" and plays a crucial role in the process of economic development. However, there is little evidence to support the hypothesis that financial liberalization directly "leads" growth. Originality/value -Group mean panel fully modified ordinary least squares (FMOLS) and country-by-country time series investigations show evidence of causality running from financial development to growth. The analysis yielded limited evidence of financial liberalization Granger-causing economic growth. However, this is not to say that financial liberalization does not promote growth, as it could do so indirectly through fostering financial development.

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Macroeconomic aspects of financial liberalization

Cited by 8 publications

References 9 publications

Determinants of industrial development: a panel analysis of South Asian economies

Determinants of industrial development: a panel analysis of South Asian economies

Causality between Foreign Portfolio Inflows and Economic Growth: Evidence from China and India

Financial liberalization, financial development and growth linkages in Sub‐Saharan African countries

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