Abdolali Monsef; Leila Torki; Seyed Jaber Alavi
Volume 3, Issue 10 , June 2013, , Pages 92-73
Abstract
There are different perspectives about the relationship between financial development and economic growth. The question has raised among economists is that whether the economic growth is affected by financial development or economic growth causes financial development? This study investigates the direction ...
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There are different perspectives about the relationship between financial development and economic growth. The question has raised among economists is that whether the economic growth is affected by financial development or economic growth causes financial development? This study investigates the direction of causality between financial markets indicators and economic growth in the D8 countries group during 1990-2010. For this, the panel causality testing approach, the method developed by Kónya (2006) based on the seemingly unrelated regressions (SUR) and Wald tests with the country specific bootstrap critical values, is applied. The results indicate that the direction of causality between financial development and economic growth not only is different in countries also, it is different for the each indicator of financial development. Empirical results show that within the financial development indicators, The domestic credit provided by the banking sector in all of selected countries except Pakistan, has affected the economic growth. This indicates a higher degree of dependence of these countries upon the banking sector. Furthermore, within the money market indicators, the domestic credit to private sector indicator has the greatest influence from economic growth.
Morteza Sameti; Homayoun Ranjbar; Monireh Hematzadeh
Volume 3, Issue 9 , April 2013, , Pages 40-25
Abstract
This study seeks to investigate the relationship between the development of financial sector and real sector in an economy under the asymmetric information because true growth is conditioned to the development of the financial structure, so that, countries with more developed financial sector, enjoy ...
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This study seeks to investigate the relationship between the development of financial sector and real sector in an economy under the asymmetric information because true growth is conditioned to the development of the financial structure, so that, countries with more developed financial sector, enjoy a higher rate of growth than the other countries. In this study the economic growth criterion denotes the development of the real sector, and variables such as ratio of the value of the stock exchange to GDP has been introduced as a criterion of development of financial sector. Also, logarithm of variance of the stock exchange price index and bank credits of the private sector index have been applied as a criterion of asymmetric information in the fiscal and money market. This model is estimated by applying panel data method for selected developed and developing countries in 1993-2008. The results depict the higher effectiveness level of financial market in comparison with money market in the developed countries, also financial structure of the developed countries differs from the developing ones because of a high level and evolved information symmetry in the developed countries, while in the developing countries, the money market is stronger than the stock exchange.
Mehdi Taghavi; Sholeh Bagheri; Parisa Mohajeri
Volume 1, Issue 4 , December 2012, , Pages 54-37
Abstract
Many studies have shown positive contribution of financial sector development to economic growth. However some new results indicate that the previous findings do not hold especially in recent years. The main purpose in this study is to examine the structural break between the financial sector development ...
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Many studies have shown positive contribution of financial sector development to economic growth. However some new results indicate that the previous findings do not hold especially in recent years. The main purpose in this study is to examine the structural break between the financial sector development and economic growth in different countries with different levels of income by using the index of bank credit to private sector. For this purpose we use an empirical endogenous growth model and a panel data consisting of 45 countries for 48 years, and test for nonlinearity. We found endogenously structural changes in the relationship of different income groups. The results confirm that the structural changes have occurred, and that the points of structural changes vary with the level of economic development.
Nasim Jaberi Khosroshahi; Mohammad Reza Mohamadvand Nahidi; Davood Noroozi
Volume 2, Issue 6 , May 2012, , Pages 208-173
Abstract
Income distribution is one of the policymakers concerns. So it is important to investigate its determinants. Considering that financial development is one of the effective factors on income distribution, we decide to investigate its effect on income distribution during 1973-2008 using Autoregressive ...
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Income distribution is one of the policymakers concerns. So it is important to investigate its determinants. Considering that financial development is one of the effective factors on income distribution, we decide to investigate its effect on income distribution during 1973-2008 using Autoregressive Distributed Lags (ARDL). Results show that the relationship between financial development and Gini coefficient is positive and reducing so support the Green-Jovanovic (1990) hypothesis. The relationship between GDP per capita and Gini coefficient is positive and reducing too. Also human capital has negative and significant impact and inflation has positive and significant impact on Gini coefficient. CUSUM and CUSUMSQ structural stability tests show that the estimated coefficients are stable over the studying period.
