The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis

Mercan, Mehmet; Göçer, İsmet

doi:10.14706/jecoss11318

Cited by 46 publications

(35 citation statements)

References 49 publications

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“…Our finding are consistent with main trend in the theoretical and empirical literature and results of the studies such as Mercan and Göçer (2013), Zhang et al (2012), Nişancı et al (2011), Estrada et al (2010 which included emerging Asian economies. Empirical findings suggested financial sector development is an important element of economic growth.…”

Section: Resultssupporting

confidence: 93%

Financial Development and Economic Growth in Emerging Asian Countries

Bayar¹

2014

ASS

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Many countries removed constraints on goods, services and capital gradually after fall of Bretton Woods system and globalization of financial markets accelerated especially as of 1980s. This process contributed to the development of financial sectors in many countries. Therefore many studies have been conducted about the possible effects of financial sector on major macroeconomic variables in recent years. This study investigates the possible effects of financial sector development on economic growth in emerging Asian countries during the period 1992-2011 by panel regression. We found that various indicators representing the development of banking sector and stock market had positive effect on economic growth in emerging Asian countries.

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Section: Resultssupporting

confidence: 93%

Financial Development and Economic Growth in Emerging Asian Countries

Bayar¹

2014

ASS

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“…Consistent with studies, (see Asiedu, 2013;Mercan et al, 2013;and Tan, 2012), trade openness had a positive and significant effect on growth before the inclusion of institutions in the model. This showed that as the countries in SADC opened up their economies the rate of growth increased significantly.…”

Section: 23determinants Of Economic Growthsupporting

confidence: 85%

Determinants of Economic Growth in Southern Africa Development Community: The Role of Institutions

Mbulawa¹

2015

AEF

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The study focuses on economic growth in SADC by examining the role of institutional variables; determining the key drivers and finding out the strength of the marginal effects of institutional quality. The study used a GMM estimator by Arellano and Bond (1991) and annual country data covering the period 1996-2010. Good quality institutions have an indirect impact on growth by working through trade openness, gross fixed capital formation, financial openness, human capital and savings ratio. Government stability, improved government effectiveness and absence of conflicts have direct effect on economic growth. High inflows of foreign direct investment are beneficial in the presence of low levels of political violence. The generic determinants of economic growth are necessary but not sufficient in explaining economic growth. Thus any reforms meant to enhance economic growth in SADC should give priority to putting in place good quality institutions which are a vital precondition.

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“…They show the positive impact of trade openness on economic growth. The trade openness positively impacts on economic growth in the case of Brazil, China, India, Russian Federation, and Turkey (Mercan et al, 2013).…”

Section: Literature Review: Trade and Economic Growthmentioning

confidence: 99%

“…We follow Wacziarg and Welch (2008) Acosta and Loza (2005) Argentina Exports + Imports (% GDP) Haroon and Nasr (2011) Pakistan Indirect taxes Mercan et al (2013) Brazil, China, India, Russian Federation, and Turkey Export + Import/ GDP…”

Section: The Heritage Foundation Index Of Economic Freedommentioning

confidence: 99%