The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

Kapidani, Mariola; Luçi, Edlira

doi:10.7441/joc.2019.02.06

Cited by 24 publications

(15 citation statements)

References 20 publications

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“…The following scientists as Horsch et al, (2018) studied the specifics of deposit insurance systems of post-Soviet countries. The features of attracting investment and developing innovation in developing countries are highlighted in the works of Lobanova et al, (2018) and Kapidani, Luci, (2019). Features of structural changes in transition countries are revealed in the works of such scientists as Olczyk, Kordalska.…”

Section: Methodsmentioning

confidence: 99%

Trust cycle of the finance sector and its determinants: The case of Ukraine

Brychko¹,

Polách²,

Kuzmenko³

et al. 2019

Journal of International Studies

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The paper presents the results of exploring the characteristics of trust cycle in the financial sector of the economy in general and across its main components (trust in banking and non-bank financial and credit systems) illustrated by the economy in transition-Ukraine-for the period 1st quarter 2009-1st quarter 2018. Determinants of nonlinear dynamics of public trust in the financial sector of the economy were also identified. For this purpose, an algorithm has been developed that enables studying the cyclical nature of public trust in the financial sector and testing the hypotheses about the determinants of its nonlinear dynamics. To highlight the cyclical component of the time series, harmonic analysis via Fourier transformations was used. In order to analyze public trust in the financial sector and its main components the following indicators were used: absolute volatility, relative volatility (in relation to financial and business cycles), the persistence of actual values and cyclic components, correlation with financial and business cycles. Our main

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Section: Methodsmentioning

confidence: 99%

Trust cycle of the finance sector and its determinants: The case of Ukraine

Brychko¹,

Polách²,

Kuzmenko³

et al. 2019

Journal of International Studies

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“…Financial system development is widely studied in financial literature as an indicator of economic growth (Kapidani & Luci, 2019). Classic literature (Cole & Park, 1983; M.…”

Section: What Do We Know About Financial Development?mentioning

confidence: 99%

Impact of Sovereign Credit Rating Disclosure on Chinese Financial Market

Pervaiz

Khan

et al. 2022

SAGE Open

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The sustainable economic role of the financial markets is essential for a trade-dependent economy such as China. Notably, the Chinese financial market has shown some unpleasant trends over the past two decades, coupled with the mounting national debt. Most of the earlier literature on the impact of the sovereign credit rating (SCR) on the financial market development (FMD) of China is confined to the event study approach, which provides policy input for short-term decision making. In this scenario, it is worthwhile investigating how the SCR asymmetrically affected the FMD of China and the threshold point (level) where the relationship of SCR-FMD turns non-linear. The Non-Linear Autoregressive Distributed Lag model’s empirical findings show that the reaction of FMD to SCR disclosure is asymmetric. In addition, the result of the threshold estimator finds a single threshold level of 3.628 above which the relationship of SCR-FMD turns non-linear. It is important to note that up to a threshold of 3.628 the coefficient is −.516 and −.627 which turns positive afterwards, no matter whether the variation explained is relatively less with the coefficient of .058 and .056 respectively. This implies that policymakers and regulators need to consider this benchmark of 3.628 to formulate future policy matters related to the equity market.

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“…Alternatively, Kapidani and Luci (2019), having observed 15 developing countries for 1996-2016, state that the number of patents indicates the country's innovation activity. A higher level of banking sector lending positively affects the number of patents.…”

Section: Literature Reviewmentioning

confidence: 99%

Relationship between financial innovation, financial depth, and economic growth

Shapoval

2021

Investment Management and Financial Innovations

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The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the ﬁnancial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.

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The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

Cited by 24 publications

References 20 publications

Trust cycle of the finance sector and its determinants: The case of Ukraine

Trust cycle of the finance sector and its determinants: The case of Ukraine

Impact of Sovereign Credit Rating Disclosure on Chinese Financial Market

Relationship between financial innovation, financial depth, and economic growth

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