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How Does Financial Development Effects on Economic Growth in BRICS Countries?

Year 2016, Volume: 2 Issue: 3, 71 - 76, 01.09.2016

Kıvanç Halil Arıç

Abstract

In the economy literature it is generally suggested that financial development leads economic growth for countries. This study analysis the financial development effects on economic growth for BRICS countries. Panel data analysis was used in the period of 2007-2014. According to the analysis results money and quasi money M2 as % of GDP and market capitalization of listed companies as % of GDP are effect on economic growth positively. However domestic credit to private sector as % of GDP effects on economic growth negatively for BRICS countries

Keywords

BRICS countries panel data financial development economic growth

References

  • Al-Malkawi, Husam-Aldin, Hazem A. Marashdeh and Naziruddin Abdullah (2012), “Financial Development and Economic Growth in the UAE: Empirical Assessment Using ARDL Approach to Co-integration”, International Journal of Economics and Finance, Volumne: 4, No: 5, p. 105-115.
  • Arıç, Kıvanç Halil (2014), “The Effects of Financial Development on Economic Growth in the European Union: A Panel Data Analysis”, International Journal of Economic Practices and Theories, Volume:4, No:4, p. 466-471.
  • Arıç, Kıvanç Halil and Hatice Erkekoğlu (2014), “The Effect of Financial Development on Growth in Countries Joining the EU After 2004: A Panel Data Analysis”, Revista Economica, Volume:66, Issue:3, p. 60-71.
  • Artan, Seyfettin (2007), “The Effects of Financial Development on Growth: Literature and Empirical Evidence”, İktisat İşletme ve Finans, Cilt:22, Sayı:252, p. 70-89.
  • Gantman, R. Ernesto and Marcelo P. Dabos (2012), “A Fragile Link? A New Empirical Analysis of the Relationship Between Financial Development and Economic Growth”, Oxford Development Studies, Volume:40, Issue:4, p.517-532.
  • Greene, W. H. (2012), Econometric Analysis, Seventh Edition, Prentice Hall, USA.
  • Gujarati, D. N. (2003), Basic Econometrics, Fourth Edition, McGraw-Hill, USA.
  • Hill, R. C., E. W. Griffiths and G. C. Lim (2011), Principles of Econometrics, Fourth Edition, Wiley, USA.
  • Khadraoui, Noureddine and Mounir Smida (2012), “Financial Development and Economic Growth: Static and Dynamic Panel Data Analysis”, International Journal of Economics and Finance, Volume:4, No:5, p. 94-104
  • Khan, S. Mohsin and Abdelhak S. Senhadji (2000). Financial Development and Economic Growth: An Overview IMF Workig Paper WP/00/209, p. 1-23.
  • King, Robert and Ross Levine (1993), “Finance and Growth: Schumpeter Might Be Right”, The Quarterly Journal of Economics, Volume:108, No:3, p. 717-737.
  • Leitao, Nuno Carlos (2010), “Financial Development and Economic Growth: A Panel Data Approach”, Theoretical and Applied Economics, Vol. XVII, No. 10 (551), p. 15-24.
  • Levine, Ross. (1997), Financial development and economic growth: Views and agenda, Journal of Economic Literature, Vol. XXXV, p. 688-726.
  • Levine, Ross and Sara Zervos (1998), “Stock Markets, Banks and Economic Growth”, The American Economic Review, Volume:88, Issue:3, p. 537-558.
  • Morazan, Pedro, Irene Knoke, Doris Knoblauch and Thobias Schafer (2012). The role of brıcs in the developing world, European Parliament Directorate-General for External Policies, Policy Department, EXPO/B/DEVE/FWC/2009/01/Lot5/24
  • Pradhan, P. Rudra, Prateek Dasgupta and Samadhan Bele (2013), Finance, Development and Economic Growth in BRICS: A Panel Data Analysis”, Journal of Quantitative Economics, Volume: 11, Nos.: 1&2 (Combined), p. 308-322.
  • Rajan, G. Raghuram and Luigi Zingales (1996). Financial Dependence and Growth”, NBER Working Paper, 5758, p. 1-45.
  • Rashid, Hamid (2011), Credit to Private Sector, Interest Spread and Volatility in Credit-Flows: Do Bank Ownership and Deposits Matter?, DESA Working Paper, No: 105, p. 1-40.
  • Wooldridge, J. M. (2012). Introductory Econometrics: A Modern Approach, Fifth Edition, South- Western, Cengage Learning, USA.
  • World Bank (2016), http://data.worldbank.org/ (Access date: 22.08.2016)
  • Yerdelen Tatoğlu, F. (2012), Panel Veri Ekonometrisi: Stata Uygulamalı, 1. Baskı, Beta Yayınları, İstanbul.

How Does Financial Development Effects on Economic Growth in BRICS Countries?

Year 2016, Volume: 2 Issue: 3, 71 - 76, 01.09.2016

Kıvanç Halil Arıç

Abstract

References

  • Al-Malkawi, Husam-Aldin, Hazem A. Marashdeh and Naziruddin Abdullah (2012), “Financial Development and Economic Growth in the UAE: Empirical Assessment Using ARDL Approach to Co-integration”, International Journal of Economics and Finance, Volumne: 4, No: 5, p. 105-115.
  • Arıç, Kıvanç Halil (2014), “The Effects of Financial Development on Economic Growth in the European Union: A Panel Data Analysis”, International Journal of Economic Practices and Theories, Volume:4, No:4, p. 466-471.
  • Arıç, Kıvanç Halil and Hatice Erkekoğlu (2014), “The Effect of Financial Development on Growth in Countries Joining the EU After 2004: A Panel Data Analysis”, Revista Economica, Volume:66, Issue:3, p. 60-71.
  • Artan, Seyfettin (2007), “The Effects of Financial Development on Growth: Literature and Empirical Evidence”, İktisat İşletme ve Finans, Cilt:22, Sayı:252, p. 70-89.
  • Gantman, R. Ernesto and Marcelo P. Dabos (2012), “A Fragile Link? A New Empirical Analysis of the Relationship Between Financial Development and Economic Growth”, Oxford Development Studies, Volume:40, Issue:4, p.517-532.
  • Greene, W. H. (2012), Econometric Analysis, Seventh Edition, Prentice Hall, USA.
  • Gujarati, D. N. (2003), Basic Econometrics, Fourth Edition, McGraw-Hill, USA.
  • Hill, R. C., E. W. Griffiths and G. C. Lim (2011), Principles of Econometrics, Fourth Edition, Wiley, USA.
  • Khadraoui, Noureddine and Mounir Smida (2012), “Financial Development and Economic Growth: Static and Dynamic Panel Data Analysis”, International Journal of Economics and Finance, Volume:4, No:5, p. 94-104
  • Khan, S. Mohsin and Abdelhak S. Senhadji (2000). Financial Development and Economic Growth: An Overview IMF Workig Paper WP/00/209, p. 1-23.
  • King, Robert and Ross Levine (1993), “Finance and Growth: Schumpeter Might Be Right”, The Quarterly Journal of Economics, Volume:108, No:3, p. 717-737.
  • Leitao, Nuno Carlos (2010), “Financial Development and Economic Growth: A Panel Data Approach”, Theoretical and Applied Economics, Vol. XVII, No. 10 (551), p. 15-24.
  • Levine, Ross. (1997), Financial development and economic growth: Views and agenda, Journal of Economic Literature, Vol. XXXV, p. 688-726.
  • Levine, Ross and Sara Zervos (1998), “Stock Markets, Banks and Economic Growth”, The American Economic Review, Volume:88, Issue:3, p. 537-558.
  • Morazan, Pedro, Irene Knoke, Doris Knoblauch and Thobias Schafer (2012). The role of brıcs in the developing world, European Parliament Directorate-General for External Policies, Policy Department, EXPO/B/DEVE/FWC/2009/01/Lot5/24
  • Pradhan, P. Rudra, Prateek Dasgupta and Samadhan Bele (2013), Finance, Development and Economic Growth in BRICS: A Panel Data Analysis”, Journal of Quantitative Economics, Volume: 11, Nos.: 1&2 (Combined), p. 308-322.
  • Rajan, G. Raghuram and Luigi Zingales (1996). Financial Dependence and Growth”, NBER Working Paper, 5758, p. 1-45.
  • Rashid, Hamid (2011), Credit to Private Sector, Interest Spread and Volatility in Credit-Flows: Do Bank Ownership and Deposits Matter?, DESA Working Paper, No: 105, p. 1-40.
  • Wooldridge, J. M. (2012). Introductory Econometrics: A Modern Approach, Fifth Edition, South- Western, Cengage Learning, USA.
  • World Bank (2016), http://data.worldbank.org/ (Access date: 22.08.2016)
  • Yerdelen Tatoğlu, F. (2012), Panel Veri Ekonometrisi: Stata Uygulamalı, 1. Baskı, Beta Yayınları, İstanbul.
There are 21 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Kıvanç Halil Arıç

Publication Date September 1, 2016
Published in Issue Year 2016 Volume: 2 Issue: 3

Cite

APA Arıç, K. H. (2016). How Does Financial Development Effects on Economic Growth in BRICS Countries?. Uluslararası Ekonomik Araştırmalar Dergisi, 2(3), 71-76.
AMA Arıç KH. How Does Financial Development Effects on Economic Growth in BRICS Countries?. UEAD. September 2016;2(3):71-76.
Chicago Arıç, Kıvanç Halil. “How Does Financial Development Effects on Economic Growth in BRICS Countries?”. Uluslararası Ekonomik Araştırmalar Dergisi 2, no. 3 (September 2016): 71-76.
EndNote Arıç KH (September 1, 2016) How Does Financial Development Effects on Economic Growth in BRICS Countries?. Uluslararası Ekonomik Araştırmalar Dergisi 2 3 71–76.
IEEE K. H. Arıç, “How Does Financial Development Effects on Economic Growth in BRICS Countries?”, UEAD, vol. 2, no. 3, pp. 71–76, 2016.
ISNAD Arıç, Kıvanç Halil. “How Does Financial Development Effects on Economic Growth in BRICS Countries?”. Uluslararası Ekonomik Araştırmalar Dergisi 2/3 (September 2016), 71-76.
JAMA Arıç KH. How Does Financial Development Effects on Economic Growth in BRICS Countries?. UEAD. 2016;2:71–76.
MLA Arıç, Kıvanç Halil. “How Does Financial Development Effects on Economic Growth in BRICS Countries?”. Uluslararası Ekonomik Araştırmalar Dergisi, vol. 2, no. 3, 2016, pp. 71-76.
Vancouver Arıç KH. How Does Financial Development Effects on Economic Growth in BRICS Countries?. UEAD. 2016;2(3):71-6.