The Effect of the Financial Development on Income Level of Transition Economies

Abstract

Using panel data methods and annual data for the period 19952010, this study attempts to examine the effects of various financial development indicators on the income level in 19 transition economies and two subgroups with differing levels of socioeconomic development. These countries have relatively weak financial system compared with developed market economies. Subgroups are formed for 11 Central and Eastern Europe (CEE) transition economies and 8 former Soviet Union (CIS) members. Panel data estimations show that developments in the financial system contribute to the income level for all country groups. Increase in banking lending, realization of banking reforms, liberalization of interest rates, and increase in domestic savings influence the income level in the CEE lower than in the CIS. Securities markets and non-bank financial institutions reforms support the income level increases in the CEE countries, but in CIS countries where the level of this variable is rather low; such an effect is not observed

Keywords

• Financial development, income level, transition economies, panel data

Geçiş Ekonomileri Örneğinde Finansal Gelişmenin Gelir Düzeyine Etkisi

Abstract

Bu çalışmada, gelişmiş piyasa ekonomileri ile karşılaştırıldığında oldukça zayıf finansal sisteme sahip 19 geçiş ekonomisinde ve sosyoekonomik gelişmişlik düzeyleri farklı iki alt grubunda finansal gelişmişlik düzeyinin gelir düzeyine etkisi, 1995-2010 yıllarına ait yıllık veri ve panel veri yöntemleri kullanılarak incelenmiştir. Alt ülke grupları 11 Merkezi ve Doğu Avrupa (CEE) ülkesi ile 8 eski Sovyetler Birliği üyesi (CIS) ülkeler için oluşturulmuştur. Çalışma sonuçları tüm ülke gruplarında finansal gelişmenin gelir düzeyini artırdığını gösterir. Finansal gelişmişlik düzeyi göstergelerinden banka kredilerinde artışın, bankacılık reformları ile faiz oranlarının serbestleştirilmesinin ve yurtiçi tasarruf artışının gelir düzeyi üzerindeki etkisi CEE ülkelerinde CIS ülkelerine oranla daha zayıftır. Menkul kıymet piyasaları ile banka dışı mali kurum reformları ise CEE ülkelerinde gelir artışını desteklerken, bu değişken düzeyinin çok düşük olduğu CIS ülkelerinde böyle bir etki gözlemlenmemiştir

Keywords

• Finansal gelişme, gelir düzeyi, geçiş ekonomileri, panel veri

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