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Year 2020, Volume: 9 Issue: 2, 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, Volume: 9 Issue: 2, 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 Volume: 9 Issue: 2

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

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