Research Article
BibTex RIS Cite

Year 2020, , 118 - 131, 30.06.2020

Ahmed Musabeh , Koutibah Alrıfaı Mohammed Kalloub

https://doi.org/10.17261/Pressacademia.2020.1218

Abstract

References

  • Abida, Z., Sghaier, I. M., And Zghidi, N. (2015). Financial development and economic growth: evidence from North African countries. Economic Alternatives, 2, 17-33.
  • Antonios, A. (2010). Financial development and economic growth: A comparative study between 15 European Union member-states. International Research Journal of Finance and Economics, 35, 143-149.
  • Anzoategui, D., Rocha, R., And Soledad Martinez Peria, M. (2010). Bank competition in the Middle East and Northern Africa region. The World Bank.
  • Araç, A., and Kutalmış Özcan, S. (2014). The Causality between Financial Development and Economic Growth: The Case of Turkey. Journal of Economic Cooperation & Development, 35(3).
  • Athanasios, V., And Antonios, A. (2010). The effect of stock and credit market development on economic growth: an empirical analysis for Italy. International Research Journal of Finance and Economics, 41(3), 33-42.
  • Baltagi, B. (2008). Econometric analysis of panel data. John Wiley & Sons.
  • Beck, T., And Levine, R. (2004). Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3), 423-442.
  • Calderón, C., And Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of development economics, 72(1), 321-334.
  • Choong, C., And Chan, S. (2011). Financial development and economic growth: A review. African Journal of Business Management, 5(6), 2017-2027.
  • Craven, B. D., And Islam, S. M. (2011). Ordinary least-squares regression (pp. 224-228). Sage Publications
  • De Gregorio, J., And Guidotti, P. E. (1995). Financial development and economic growth. World development, 23(3), 433-448.
  • Demetriades, P. O., & Hussein, K. A. (1996). Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of Development Economics, 51(2), 387-411.
  • Dudian, M., And Popa, R. A. (2013). Financial development and economic growth in Central and Eastern Europe. Theoretical and Applied Economics, 20(8), 59-68.
  • Durusu-Ciftci, D., Ispir, M. S., & Yetkiner, H. (2017). Financial development and economic growth: Some theory and more evidence. Journal of Policy Modeling, 39(2), 290-306.
  • Erinç Yeldan, A., And Ünüvar, B. (2016). An assessment of the Turkish economy in the AKP era. Research and policy on Turkey, 1(1), 11-28.
  • Hassan, M. K., Sanchez, B., and Yu, J. S. (2011). Financial development and economic growth: New evidence from panel data. The Quarterly Review of economics and finance, 51(1), 88-104.
  • Hermes, N., And Lensink, R. (2003). Foreign direct investment, financial development and economic growth. The journal of development studies, 40(1), 142-163.
  • Hsiao, C. (2014). Analysis of panel data (No. 54). Cambridge university press.
  • Kaushal, L. A., And Pathak, N. (2015). The causal relationship among economic growth, financial development and trade openness in the Indian economy. International Journal of Economic Perspectives, 9(2), 5-22.
  • Kazar, A., and Kazar, G. (2016). Globalization, financial development and economic growth. International Journal of Economics and Financial Issues, 6(2), 578-587.
  • Lenka, S. K. (2015). Measuring financial development in India: A PCA approach. Theoretical & Applied Economics, 22(1).
  • Lenka, S. K., & Sharma, R. (2017). Does financial inclusion spur economic growth in India?. The Journal of Developing Areas, 51(3), 215-228.
  • Levine, R. (2000) Financial intermediation and growth: Causality and causes without outliers. Portuguese Economic Journal, 8(1), 15–22.
  • Mercan, M., And Göçer, İ. (2013). The effect of financial development on economic growth in BRIC-T countries: Panel data analysis. Journal of Economic and Social Studies, 3(1), 199.
  • Nyasha, S., And Odhiambo, N. M. (2015). The impact of banks and stock market development on economic growth in South Africa: an ARDL-bounds testing approach. Contemporary Economics, 9(1), 93-108.
  • Patrick, H. T. (1966). Financial development and economic growth in underdeveloped countries. Economic development and Cultural change, 14(2), 174-189.
  • Rosalia, M. R. G. (2013). Impact of Financial Development on Economic growth.
  • Schumpeter, J. [1934], The Theory of Economic Development, Translated by Redvers Opie, Harvard University Press, Cambridge, MA.
  • Stefani, P. (2007). Financial development and economic growth in brazil: 1986-2006. Economics Bulletin, 3(69), 1-13.
  • Tsaurai, K. (2018). What Are the Determinants of Stock Market Development in Emerging Markets?. Academy of Accounting and Financial Studies Journal.
  • Valickova, P., Havranek, T., And Horvath, R. (2015). Financial development and economic growth: A meta‐analysis. Journal of Economic Surveys, 29(3), 506-526.
  • Xiang, L., And Dongye, Y. (2016). Research on the Relationship between Financial Development and Economic Growth: Based on an Empirical Analysis of Shenzhen. Journal of Applied Finance and Banking, 6(4), 17

FINANCIAL DEVELOPMENT, ECONOMIC GROWTH AND WELFARE: EVIDENCE FROM EMERGING COUNTRIES

Year 2020, , 118 - 131, 30.06.2020

Ahmed Musabeh , Koutibah Alrıfaı Mohammed Kalloub

https://doi.org/10.17261/Pressacademia.2020.1218

Abstract

Purpose- This study investigates how financial development has affected the economic growth and welfare for four emerging economies, namely Brazil, Turkey, Hungary, and, Poland over the period 2000-2013.
Methodology- In this research, we employed a panel dataset for the four countries using five different indicators for financial development separately. Which are (financial development index, domestic credit to the private sector, stock exchange market capitalization, and Lerner Index).
Findings- The results confirmed that financial development has a positive impact on economic growth, and there is a difference between Turkey, Brazil, Poland, and Hungary in terms of the impact size of financial development on economic growth. The highest and most energetic effect was on Turkey then on Poland, then on Hungary, and finally on Brazil
Conclusion- This study found that GDP growth is highly correlated with financial development. Thus, countries may undertake different steps to increase the efficiency of their financial sectors and therefore enhance their economic growth.

Keywords

Financial development economic growth economic welfare panel data emerging economies

References

  • Abida, Z., Sghaier, I. M., And Zghidi, N. (2015). Financial development and economic growth: evidence from North African countries. Economic Alternatives, 2, 17-33.
  • Antonios, A. (2010). Financial development and economic growth: A comparative study between 15 European Union member-states. International Research Journal of Finance and Economics, 35, 143-149.
  • Anzoategui, D., Rocha, R., And Soledad Martinez Peria, M. (2010). Bank competition in the Middle East and Northern Africa region. The World Bank.
  • Araç, A., and Kutalmış Özcan, S. (2014). The Causality between Financial Development and Economic Growth: The Case of Turkey. Journal of Economic Cooperation & Development, 35(3).
  • Athanasios, V., And Antonios, A. (2010). The effect of stock and credit market development on economic growth: an empirical analysis for Italy. International Research Journal of Finance and Economics, 41(3), 33-42.
  • Baltagi, B. (2008). Econometric analysis of panel data. John Wiley & Sons.
  • Beck, T., And Levine, R. (2004). Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3), 423-442.
  • Calderón, C., And Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of development economics, 72(1), 321-334.
  • Choong, C., And Chan, S. (2011). Financial development and economic growth: A review. African Journal of Business Management, 5(6), 2017-2027.
  • Craven, B. D., And Islam, S. M. (2011). Ordinary least-squares regression (pp. 224-228). Sage Publications
  • De Gregorio, J., And Guidotti, P. E. (1995). Financial development and economic growth. World development, 23(3), 433-448.
  • Demetriades, P. O., & Hussein, K. A. (1996). Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of Development Economics, 51(2), 387-411.
  • Dudian, M., And Popa, R. A. (2013). Financial development and economic growth in Central and Eastern Europe. Theoretical and Applied Economics, 20(8), 59-68.
  • Durusu-Ciftci, D., Ispir, M. S., & Yetkiner, H. (2017). Financial development and economic growth: Some theory and more evidence. Journal of Policy Modeling, 39(2), 290-306.
  • Erinç Yeldan, A., And Ünüvar, B. (2016). An assessment of the Turkish economy in the AKP era. Research and policy on Turkey, 1(1), 11-28.
  • Hassan, M. K., Sanchez, B., and Yu, J. S. (2011). Financial development and economic growth: New evidence from panel data. The Quarterly Review of economics and finance, 51(1), 88-104.
  • Hermes, N., And Lensink, R. (2003). Foreign direct investment, financial development and economic growth. The journal of development studies, 40(1), 142-163.
  • Hsiao, C. (2014). Analysis of panel data (No. 54). Cambridge university press.
  • Kaushal, L. A., And Pathak, N. (2015). The causal relationship among economic growth, financial development and trade openness in the Indian economy. International Journal of Economic Perspectives, 9(2), 5-22.
  • Kazar, A., and Kazar, G. (2016). Globalization, financial development and economic growth. International Journal of Economics and Financial Issues, 6(2), 578-587.
  • Lenka, S. K. (2015). Measuring financial development in India: A PCA approach. Theoretical & Applied Economics, 22(1).
  • Lenka, S. K., & Sharma, R. (2017). Does financial inclusion spur economic growth in India?. The Journal of Developing Areas, 51(3), 215-228.
  • Levine, R. (2000) Financial intermediation and growth: Causality and causes without outliers. Portuguese Economic Journal, 8(1), 15–22.
  • Mercan, M., And Göçer, İ. (2013). The effect of financial development on economic growth in BRIC-T countries: Panel data analysis. Journal of Economic and Social Studies, 3(1), 199.
  • Nyasha, S., And Odhiambo, N. M. (2015). The impact of banks and stock market development on economic growth in South Africa: an ARDL-bounds testing approach. Contemporary Economics, 9(1), 93-108.
  • Patrick, H. T. (1966). Financial development and economic growth in underdeveloped countries. Economic development and Cultural change, 14(2), 174-189.
  • Rosalia, M. R. G. (2013). Impact of Financial Development on Economic growth.
  • Schumpeter, J. [1934], The Theory of Economic Development, Translated by Redvers Opie, Harvard University Press, Cambridge, MA.
  • Stefani, P. (2007). Financial development and economic growth in brazil: 1986-2006. Economics Bulletin, 3(69), 1-13.
  • Tsaurai, K. (2018). What Are the Determinants of Stock Market Development in Emerging Markets?. Academy of Accounting and Financial Studies Journal.
  • Valickova, P., Havranek, T., And Horvath, R. (2015). Financial development and economic growth: A meta‐analysis. Journal of Economic Surveys, 29(3), 506-526.
  • Xiang, L., And Dongye, Y. (2016). Research on the Relationship between Financial Development and Economic Growth: Based on an Empirical Analysis of Shenzhen. Journal of Applied Finance and Banking, 6(4), 17
There are 32 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Ahmed Musabeh 0000-0003-2923-6204

Koutibah Alrıfaı This is me 0000-0002-4637-5348

Mohammed Kalloub 0000-0001-9153-1146

Publication Date June 30, 2020
Published in Issue Year 2020

Cite

APA Musabeh, A., Alrıfaı, K., & Kalloub, M. (2020). FINANCIAL DEVELOPMENT, ECONOMIC GROWTH AND WELFARE: EVIDENCE FROM EMERGING COUNTRIES. Journal of Business Economics and Finance, 9(2), 118-131. https://doi.org/10.17261/Pressacademia.2020.1218

Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.



Ethics Policy - JBEF applies the standards of Committee on Publication Ethics (COPE). JBEF is committed to the academic community ensuring ethics and quality of manuscripts in publications. Plagiarism is strictly forbidden and the manuscripts found to be plagiarized will not be accepted or if published will be removed from the publication. Authors must certify that their manuscripts are their original work. Plagiarism, duplicate, data fabrication and redundant publications are forbidden. The manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).


Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.