Journal of Money, Credit, and Banking 30, 657-678. Law, finance, and firm growth. The paper analyzes headline performance indicators as well as their key drivers and finds that state banks exhibit significantly weaker performance, despite their larger size. Cecchetti and Enisse Kharroubi, 2012; Barajas, Chami and Yousefi, 2013;Dabla-Norris and Srivisal, 2013;Thorsten Beck, Hans Degryse and Christiane Kneer, 2014;Max Breitenlechner, Martin Gächter and Friedrich Sindermann, 2015; Kizito U. This calls for intensified efforts in resource-based economies to deepen and broaden financial systems. It is claimed that, weak financial system, inappropriate policy and poor financial instrument obstacles to ensure significant effect of finance on growth. The difference and system generalized method-of-moments estimators, developed by Holtz-Eakin, Newey, and Rosen 1988, Econometrica 56: 1371-1395 ; Arellano and Bond 1991, Review of Economic Studies 58: 277-297 ; Arellano and Bover 1995, Journal of Econometrics 68: 29-51 ; and Blundell and Bond 1998, Journal of Econometrics 87: 115-143 , are increasingly popular.
It finally reports the results of a series of studies targeting the role of foreign-owned banks in influencing the economic path of host countries. Rousseau and Paul Wachtel, 2011; Adolfo Barajas, Ralph Chami and Seyed R. Journal of Finance 53, 2107-2137. Bibliographic data for series maintained by. Journal of Banking and Financial Economics 2014 - 2018 From Contact information at. The empirical results vary with estimation methodology and model specification, but indicate no long-run relationship between financial intermediation and nonhydrocarbon output growth.
This paper investigates the impact of stock markets and banks on economic growth using a panel data set for the period 1976—1998 and applying recent generalized-method-of moments techniques developed for dynamic panels. Similarly, the recent increase in cross-border lending and debt issues has been concentrated in high-income countries, while low and lower-middle income countries have experienced an increase in remittance flows. Since the mid-1980s, the financial system has experienced a strong liberalisation and deregulation by preventing its beneficial effects on the real economy. The paper also shows that the weakness of financial institutions, contributes to the poor performance of economic growth of the oil economies and the weakness of financial institutions might be associated with the dominant role of government in total investment and the weakness of private sector. The Ratio of Private Credit to Deposits, 1975-20085. More information Research fields, statistics, top rankings, if available.
Journal of development economics, 84 1 , 215-233. In highly developed countries, we find no or even positive effects. Journal ofApplied Econometrics, 16, 289—326. These are the fields, ordered by number of announcements, along with their dates. On other hand, those studies that confirmed negative or weak contribution of financial inclusion on growth is due to weak financial system, low availability of financial system.
The importance of these results is illustrated in an application to the estimation of a labour demand model using company panel data. The paper finds no strong correlation between ownership and performance for banks located in industrial countries. Cardullo and Manhong Mannie Liu pp. Financial development has been historically captured by domestic credit provided by banking sector i. Share of Public and Foreign Banks throughout the World, 2002. References Cite this article as: Cevik, S.
Nath and Vasilis Sarafidis pp. Please ask Hassan Zaidi to update the entry or the correct email address. Deepening in the Banking Sector, Across Regions, 1975-2008. From this sense some of the few literatures fail to observe positive effect instead confirmed negative impact between this link. Next it describes how to apply these estimators with xtabond2. Our findings contribute to the literature on the poverty trap: we argue that improving the quality of financial institutions alone is unlikely to boost quality or lower prices of the poorest countries.
Stock Market Turnover and Growth: Heterogeneity Between Oil Exporters and Other Countries; 11. Most of these empirical studies find a weakening in the positive association between finance and economic growth or even a negative association between them Neven Valev, 2004a and2004b;Philippe Aghion, Peter Howitt and David Mayer-Foulkes, 2005;Ayhan Kose et al. This allows to link your profile to this item. Does Islamic bank financing contribute to economic growth? The long-run estimates indicate that the stock market indicators have significant positive and negative impact on income inequalities in developed and emerging market economies, respectively. Finally, we consider models with predetermined variables that have constant correlation with the effects and illustrate their importance with simulations.
Low development of financial sector and below threshold point may be the reasons. Note that if the versions have a very similar title and are in the author's profile, the links will usually be created automatically. Public ownership is harmful only if a country has low financial development and low institutional quality. An empirical analysis for Malaysia Language: English Keywords: Supply leading, Demand following, Causality, Islamic banks, Malaysia. Rajan and Arvind Subramanian, 2007;Rousseau and Wachtel, 2011;Stephen G. The paper documents significant role played by the economic growth to the development of Islamic Banks in Malaysia, supporting the growth-Islamic finance led hypothesis or the demand following view.