Financial development Research Papers - Academia.edu (original) (raw)

2025, RePEc: Research Papers in Economics

This paper shows that the balance sheet channel of monetary transmission is stronger for US banks that securitize their assets. This finding is different, in spirit, from the widely-found negative relationship between financial development and the strength of the lending channel of monetary transmission. Focusing on the balance sheet channel, and using bank-level observations, we find that securitizing banks are more sensitive to borrowers' balance sheets and that monetary policy has a greater impact on this sensitivity for securitizing banks. The optimality conditions from a simple partial equilibrium framework suggest that the positive effects of securitization on policy effectiveness could be due to the high sensitivity of security prices to policy rates.

2025, Journal of Banking & Finance

This paper shows that the balance sheet channel of monetary transmission works mainly through U.S. bank holding companies that securitize their assets. This finding is different, in spirit, from the widely-found negative relationship between financial development and the strength of the lending channel of monetary transmission. Focusing on the balance sheet channel, and using bank-level observations, we find that securitized banks are more sensitive to borrowers' balance sheets and that monetary policy has a greater impact on this sensitivity for securitizing bank holding companies. The optimality conditions from a simple partial equilibrium framework suggest that the positive effects of securitization on policy effectiveness could be due to the high sensitivity of security prices to policy rates.

2025, Alzahra university

Over the years, it has been observed that shares of closed-end funds (CEFs) are frequently traded at prices that differ significantly from the total market value of the underlying assets held by these funds, resulting in a gap between the share price and the net asset value (NAV). Despite numerous studies, no single explanation or identified component from traditional or behavioral finance has fully accounted for the price gaps in CEF share trading. This issue remains a significant and longstanding debate between traditional and behavioral finance paradigms. The primary objective of this study is to review existing research on closed-end funds to identify key indicators influencing price gaps in the trading of these funds' units, from both traditional and behavioral finance perspectives. A deeper understanding of CEF behavior encourages further research into these funds, market efficiency, asset pricing, and the paradigms of traditional and behavioral finance. This study is classified as developmental research and adopts a qualitative research methodology, utilizing a meta-synthesis approach. To achieve the research objectives, 389 studies conducted between 1968 and 2024 were reviewed, with 88 articles meeting the inclusion criteria analyzed using the Sandelowski and Barroso meta-synthesis method. The analysis identified four components comprising 35 indicators, categorized into four dimensions: political factors, economic factors, fund-specific factors, and psychological factors. These components were further classified into two overarching dimensionstraditional (rational) finance and behavioral finance-based on the existing literature. The traditional finance dimension, grounded in the theory of rational investor behavior, attributes price gaps to logical, fundamental reasons and fund-specific characteristics, identifying 25 indicators across three components (political factors, economic factors, and fund-specific factors). Conversely, the behavioral finance dimension, rejecting the assumption of rational investor behavior, posits that investors' behavioral biases play a critical role in the deviation of fund prices from their NAVs, identifying 10 indicators within one component (psychological factors)

2025, Intechopen

A developed nation's rate of economic growth relies on sustaining a modern and stable financial market to facilitate consistent capital investment over the long run. Starting from the last half of the twentieth century, sustained growth in total credit availability across developed nations has been linked to increased financial market volatility and subsequent interruptions in economic growth. This study examines empirical research aimed at determining the viability of using credit availability metrics to predict financial market volatility and economic recessions. Empirical research used a macro-prudential perspective to develop a model that examines whether metrics reflecting credit booms, like the credit gap, can be reliably used to predict increased future financial market variability and reductions in economic growth. The empirical research analysis employs a receiver operating characteristic methodology that reveals how metrics of credit leveraging have become useful predictive tools as total credit has increased over time.

2025, Academy Global Publishing House

Bu çalışma, 20. yüzyılın otoriter ideolojileri arasında yer alan Nazizm, Hitlerizm ve Faşizm’i karşılaştırmalı bir perspektifle ele alarak, bu üç siyasal yapının hem ortak noktalarını hem de birbirlerinden ayrıldığı temel noktaları analiz etmektedir. Nazizm, Aryan ırkının üstünlüğünü merkeze alan, biyolojik determinizmle temellendirilmiş ve antisemitizmle iç içe geçmiş bir ideolojik yapı olarak tanımlanırken; Hitlerizm, bu yapının Adolf Hitler’in kişisel dünya görüşüyle daha da radikalleşmiş, karizmatik liderliğe dayalı, uygulamacı bir biçimi olarak değerlendirilir. Hitlerizm, Führer ilkesi etrafında şekillenmiş ve ideolojinin merkezine liderin iradesini yerleştirmiştir; bu yönüyle yalnızca bir alt tür değil, Nazizm’in içinden doğan ayrıksı bir form olarak öne çıkmaktadır.
Çalışmada ayrıca Nazizm ile İtalyan Faşizmi arasındaki benzerlik ve farklara da yer verilmektedir. Her iki ideoloji de liberal demokrasiye karşıt, anti-komünist ve devletin mutlak otoritesini savunur nitelikte olsa da; Nazizm, ırksal saiklerle şekillenmiş bir soykırım pratiğine yönelmişken, Faşizm daha çok kültürel milliyetçilik ve devlet korporatizmi etrafında gelişmiştir. Bu farklar, iki ideolojinin tarihsel işleyişinde ve şiddet biçimlerinde belirleyici olmuştur.
Son olarak çalışma, Hannah Arendt, Carl Friedrich ve Zeev Sternhell gibi kuramcıların totalitarizm tartışmalarıyla ilişki kurar. Tek parti yönetimi, lider kültü ve muhalefetin bastırılması gibi ortak yapısal unsurlara rağmen, her bir ideolojinin içerik ve yönelimi farklı olduğu için analitik düzeyde ayrıştırılması gerektiği ileri sürülür. Bu ayrım, modern otoriterizmin ırkçılık, karizmatik otorite ve ideolojik katılık eksenlerinde nasıl şekillendiğinin daha sağlıklı anlaşılmasına imkân tanır. Makale, bu yönüyle faşizm çalışmaları ve totalitarizm kuramına, ideolojik olarak benzer görünen ama yapısal olarak ayrışan siyasal hareketleri çözümlemeye yönelik özgün bir çerçeve sunmaktadır. Böylece çalışmanın amacı, yüzeyde benzeşen ancak yapısal ve ideolojik olarak ayrışan bu otoriter hareketlerin daha derinlikli ve ayırt edici biçimde anlaşılmasına katkı sağlamayı amaçlamaktadır.

2025, Review Article

This critical review synthesizes over a century of research on the finance–growth nexus, arguing that this relationship is not simply linear but a complex, multifaceted phenomenon contingent on institutional quality, non-linear dynamics and technological innovations – a thesis substantiated by the extensive literature reviewed. Employing a systematic literature review methodology, the article defines financial development as improving financial system quantity, quality and efficiency and economic growth as sustained output increases. It critically analyzes the bidirectional and often non-linear interplay between finance and growth, tracing classical theories to modern endogenous models and highlighting persistent methodological challenges. Special attention is given to financial crises, the transformative impact of financial technology (fintech) and artificial intelligence (AI), and evolving policy implications. Findings underscore the nexus’s context-dependent nature, challenging simplistic assumptions and emphasizing the need for nuanced, evidence-based policy implications to foster sustainable and inclusive economic growth in an increasingly digital global economy.

2025, Yönetim ve Ekonomi Araştırmaları Dergisi

he aim of this paper is to summarize a large number of economic and demographic determinants that are used to predict the demand for life insurance into a smaller number of component variables (components) and to determine which component has a stronger influence on demand for life insurance. Data are collected for 150 countries during the period 2005-2010. Final cross-country database is consisted of six-year average values on variables for selected countries. The methodology includes techniques of multivariate analysis: principal component analysis (PCA) and multiple linear regression. Results show that initial determinants of demand for life insurance can be summarized into two components: economic and demographic. Both components have a statistically significant positive influence on the demand for life insurance. On the basis of standardized regression coefficients it can be concluded that economic component is stronger determinant of demand for life insurance in comparison wit...

2025

Il presente lavoro si inserisce nel dibattito in corso tra gli economisti e gli operatori economici relativo alla valutazione dell’impatto del processo di ristrutturazione del sistema bancario nazionale, iniziato nei primi anni dello scorso decennio, sulla crescita delle economie meridionali, la cui struttura economica è costituita prevalentemente da piccole e medie imprese.

2025

The main objective when a country implements capital controls is to prevent large fluctuations in the exchange rate and asset price volatility. The direct mechanism through which these policies work is simple: a tax on foreign borrowing reduces flows, which prevents the price from changing considerably. Since foreign borrowing involves transactions in the foreign exchange market, the price of the asset can also be thought of as the exchange rate. However, the empirical literature has not come to a consensus on the effectiveness of capital controls on managing the exchange rate. Therefore, could there be other channels, different from their direct effect on flows, through which capital controls have the undesired effect of increasing fluctuations in the exchange rate? In particular, can capital controls increase the sensitivity of prices to sudden changes in capital flows?The dissertation answers this question using two approaches. First, I embed into a market microstructure model a ...

2025, Singaporean Journal of Business Economics and Management Studies

In a well-structured economy, financial development is expected to stimulate growth of the economy however, this paper tend to empirical investigate the relationship between financial development and economic growth in Nigeria using time series data spanning from 1986 to 2014. The output of our empirical analysis reflect that all the data used in this process of research are stationary after first differencing in the order of 1(1) as specifies by the output of the Phillip peron unit root test. the output of the parsimonious error correction model shows that of all the variable used in the process of research, only credit to the private sector (CPS) has a positive and significant influence on the growth of the Nigeria economy while other variable are negative and insignificant. Mine while, the result of the granger causality test shows that there exist a causality flow between PCGDP, IIR and, CPS with causality flowing from PCGDP to financial development indicators (IRR and CPS) respectively. Judging by the output of this research, it show that in the Nigeria context, economic growth determine financial sector development. This suggest that financial development in Nigeria is demand following while the economy is leading. The economic implication of this is that the financial sectors out-rightly rely on the growth of the economy i.e. the speedy the economic growth, the rapid the development of the financial sector in Nigeria. Keyword: broad money supply, insurance intermediation ratio, credit to the private sector, economic performance The financial sector of an economy comprise of institution, market and regulators that deal in financial instruments under the large framework within which the activities of the various participant are regulated. Put separately, the Nigerian financial system apart from the central bank of Nigeria and some other bodies who serve as a regulators comprises of the "bank financial intermediaries, non-bank financial intermediaries and the financial market" (monogbe, 2015). A whole lots of scholar has written on the topic financial intermediation and how it affect the economic in their respective countries. Intermediation process involve mobilisation of funds from surplus economic unit to the deficit economic unit who has the business ideas but lack financial capacity. This intermediating function is not only restricted to

2025, Asian Journal of Economics and Banking

Purpose-This article presents a literature review of bank non-performing loans (NPLs) research around the world and suggests directions for future research. Design/methodology/approach-The study used the thematic and bibliometric literature review methodologies to present a review of the recent NPL literature that have emerged since 2020. Findings-Significant NPL research has emerged from the European, Asian and African regions, while fewer research studies have emerged from the Asia-Pacific, North America, Latin America and Caribbean regions as well as from the South Asian Association for Regional Cooperation and Organization for Economic Cooperation and Development countries. The new NPL determinants in the recent literature are corporate governance, fintech, financial inclusion, country risks, regulatory quality, political risks, shadow banking activity, the COVID-19 pandemic, public and/or external debt, country risks, real house prices and the independence of the central bank. The common regional NPL determinants are corruption, gross domestic product (GDP), debt, loan growth, inflation, capital adequacy ratio, lending rate, competition, the regulatory environment and GDP growth. The common theories used in the recent literature to explain the behavior of NPL are agency theory, stakeholder theory, information asymmetry theory and moral hazard theory, while the common empirical methodologies used are the panel regression and system generalized method of moments regression methods. Practical implications-Financial regulators, bank supervisors and banking scholars should pay attention to the new emerging determinants of NPL. They should also understand the effect of NPL on financial and/or banking stability so that safeguards can be put in place to minimize the adverse effect of NPLs. More research is needed to provide insights into this area. Originality/value-To date, no study has presented an overview of the post-2020 NPL literature to identify the new determinants and effects of NPL across several contexts and regions.

2025, Innovation and Green Development

Currently, climate change is a burning concern all over the world. It is causing immense pressure on the economy of developing countries due to the adverse climatic events caused by climate change. Greenhouse gas (GHG) emission, being the top justification for causing climate change, has been the center of concern over the years. This study sheds light on how economic advancement, energy use, and foreign direct investment (FDI) coupled with population might influence the emission of GHGs in Bangladesh. The cointegrating relationship among the factors was established via the Autoregressive Distributed Lag (ARDL) bounds test and Johansen cointegration test before performing the regression analysis. The ARDL short-and long-run approach alongside the Dynamic Ordinary Least Squares (DOLS) procedure was implemented to see how each independent variable impacts the emission of GHGs between 1990 and 2019. The ARDL estimation reveals that a 1 % intensification in energy use, economic progress, and population increases GHG emissions by 0.76 %, 0.18 %, and 0.28 %, respectively, in the long run, while a 1 % upsurge in foreign direct FDI reduces emissions of GHGs by 0.07 % in the long run. This outcome will advocate for Bangladesh's policymakers to establish a better platform in future global climate change negotiations.

2025, Aligning financial development and banking sustainability for environmental sustainability: empirical insights from emerging economies

This study explores the complex relationships among banking sustainability, financial development, and the ecological footprint in emerging economies, with a particular focus on public‒private partnerships (PPPs) in the energy sector. Using data from 16 emerging countries from 1990 to 2021 and the ARDL model, we highlight that banking sustainability initiatives supported by PPPs effectively reduce the ecological footprint in the short term. Our analysis introduces a novel definition of banking sustainability centered on energy investments through PPPs, offering an innovative perspective compared with traditional green finance approaches. Our results validate the environmental Kuznets curve (EKC) hypothesis, showing that, in the short term, PPPs promote the adoption of renewable energy technologies and circular economy practices, thereby improving environmental policies and supporting sustainable practices. However, we also observe a negative long-term effect, where initial benefits may be undermined by a shift in investments toward less sustainable sectors or external economic shocks. This dynamic underscores the importance of an integrated approach that combines economic growth, financial development, and environmental sustainability. We recommend that emerging economies strengthen banking sustainability policies with stringent standards for green investments, encourage PPPs in the energy sector, and align financial development strategies with environmental objectives. Our findings highlight the need for a holistic approach and innovative financial mechanisms to support sustainable economic growth while minimizing environmental impact.

2025

У статті досліджено структурно-динамічні характеристики майнового стану підприємств
індустрії туризму в Україні. Проведено аналіз динаміки кількості діючих суб’єктів господарювання та валюти балансу у сфері туристичної діяльності, визначені середні значення
валюти балансу туристичних агентств і туристичних операторів. Проведено розрахунок
частки середніх підприємств, малих підприємств та мікропідприємств у складі та валюті
балансу туристичних агентств і туристичних операторів. Визначено зміни в структурі
активів і пасивів суб’єктів туристичної діяльності. Узагальнено позитивні та негативні
характеристики майнового стану туристичних агентств і туристичних операторів за
результатами аналізу динаміки та структури необоротних

2025, مجلة علوم الإنسان والمجتمع

تهدف هذه الدراسة إلى التعرف على الدينامية التي شهدتها عملية التأسيس للإدارة
المحلية في المملكة العربية السعودية، والتطورات التي عرفتها منذ مرحلة توحيد الدولة
على يد الملك المؤسس إلى غاية الإصلاحات الحديثة مع مطلع الألفية الثالثة، وهذا من
من المناطق
ً
خلال التطرق إلى عملية التأسيس بداية والمحافظات والمراكز والنواحي،
وعلى مستوى البلديات باعتبارها قاعدة اللامركزية الإدارية، وهذا حتى يتم اكتشاف
الناظم الذي يحكم عمل الإدارة المحلية في المملكة، وكذا الأهمية المؤسساتية
والوظيفية للإدارة المحلية في عملية بناء الدولة بشكل عام، وفي عملية فرض النظام
العام والسكينة العمومية في إقليم الدولة بشكل خاص، عن طريق المؤسسات الإدارية
والمرافق العمومية التابعة للدولة، وترسيخ قيم المواطنة وثقافة الدولة لدى
المواطنين، لا سيما مع النزعة التحديثية الهائلة التي عرفتها المملكة منذ مطلع
تسعينات القرن العشرين إلى غاية اليوم.
الكلمات المفتاحية: الجماعات المحلية؛ المملكة العربية السعودية، المجالس المحلية

2025, 10th International Scientific Conference ERAZ 2024 – Selected Papers

This paper explores the application and potential of panel data regression analysis in international trade. By leveraging panel data, the authors aim to understand the impact of various economic factors on poverty rates in African countries. The study uses fixed effects models to analyze the relationship between gross domestic product (GDP) per capita, foreign direct investment (FDI) inflows, remittances, and export rates on the proportion of the working population living in poverty. The findings indicate that higher GDP per capita and increased remittances reduce poverty rates, whereas FDI inflows and export rates do not show a statistically significant impact. The paper underscores the importance of economic growth and remittances in poverty alleviation and calls for more nuanced strategies to address poverty in Africa effectively. Future research should investigate the structural aspects of exports and regional specificities to enhance the understanding of these dynamics.

2025, Journal of Development Economics

El presente artículo utiliza la prueba de descomposición de Geweke sobre una muestra de datos de panel de 109 países durante el periodo 1960-94 para evaluar la dirección de causalidad entre el desarrollo financiero y el crecimiento económico. Entre nuestros principales resultados, tenemos: (1) el desarrollo financiero precede al crecimiento económico, (2) la causalidad de Granger de desarrollo financiero a crecimiento y viceversa coexisten, (3) la relación causal de profundización financiera a crecimiento tiene una mayor contribución en el grado de asociación de ambas variables en los países en desarrollo que en los países industriales, (4) a medida que el horizonte de los efectos sea mayor, la relación causal de desarrollo financiero a crecimiento económico tiene una mayor importancia, (5) la profundización financiera promueve el crecimiento a través de una mayor acumulación de capital y mejoras en productividad, siendo el último canal el más importante.

2025, New Applied Studies in Management, Economics & Accounting

This study investigates the role of stock price and market efficiency in forecasting future profitability. In pursuit of this objective, the study undertook a comprehensive analysis of data derived from a robust statistical sample of 152 firms, encompassing a total of 1,520 firm-year observations. The data collection period for this research spans nine years, from 2013 to 2022; however, owing to the reliance on data from the subsequent three years for the measurement of the dependent variable, the analytical scope is refined to encompass the years 2013 through 2018. The statistical population comprises all firms listed on the Tehran Stock Exchange (TSE), from which the research sample was meticulously selected utilizing a systematic screening method. To effectively address the research objectives, advanced analytical techniques, including multiple regression analysis and panel data methods, were employed. The findings suggest that market efficiency positively moderates the relationship between return on assets and future profitability. However, the results show that the interaction between market efficiency and firm market value, as measured by the logarithm of Tobin's Q ratio, does not significantly affect future profitability. Based on these findings, it can be concluded that market efficiency has no significant impact on the ability of stock prices to predict firms' future profitability.

2025

Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of talent as the new stakeholder in the firm. This paper examines the role of trade integration for the changing nature of the corporation. International trade leads to a 'war for talent' which makes it more likely that an organizational equilibrium emerges in the integrated world economy in which control is delegated to lower levels of the firms' hierarchy empowering human capital. Furthermore, trade integration is shown to lead to waves of outsourcing and to convergence in corporate cultures across countries.

2025

A growing line of research emphasizes the requirement of a well-functioning financial system for a sustained economic growth. Meanwhile, a good financial system is characterized by its' continues growth. This encourages hypothesizing significant economic growth effects of financial development. Therefore, this study investigates shortrun and long-run relationship between financial development and economic growth in South Asian countries. However, due to data constraint, only India, Nepal, Pakistan, and Sri Lanka are considered over the period 1995 to 2012. Broad money supply to GDP and bank deposits to GDP are taken as proxies for financial depth and banking sector development respectively. Long-panel estimation techniques of Mean Group, Pool Mean Group, and Dynamic Fixed Effect models are used in obtaining the results. Findings of the study indicate that development in banking sector depicts positively significant long-run growth effects while growth effects are not significant through financial depth. As expected, growth effects are faster through banking sector development, since its' speed of adjustment to the long-run is relatively high. However, development in financial depth carries faster growth effects for India and Sri Lanka.

2025, Research Journal of Finance and Accounting

There seems to be a general perception that the exchange rate pass-through is the most important channel in the transmission process of monetary policy in Albania. This perception is questioned here in light of the altering relationships in this developing economy. A discussion on the transmission channels in the Albanian economy is followed by a study of the macro-economic relationships and pragmatic econometrics quantifying the monetary effectiveness. The results indicate that the dollar has become less important in the monetary transmission process at the benefit of the euro. There are moreover strong signs that the exchange rate channel as such is loosing its influence at the benefit of the other transmission channels, like the credit channel and most likely the wage channel. However, economists have tested the PPP theory, pursuing criticisms on the accuracy of this paradigm vis-a-vis the long-run behaviour of the real exchange rate. Studies from Froot and Rogoff (1991) and MacDonald (1995) look at it from this perspective. Under continuous scrutiny, both theoretically and empirically, the PPP theory is generally understood to be able to, at best, determine the real exchange equilibrium only in the very long horizon, which typically overcomes relevant timeframes for economic policy and cannot provide an understanding of factors behind short and mid-term deviations from equilibrium.

2025, Research Journal of Finance and Accounting

Foreign exchange market is very important. In emerging market economies, under-development of financial markets leads to goods hoarding and foreign currency accumulation as forms of investment. In this paper, an asset market model, supplemented by explicit treatment of smuggling and second-economy activity, is used for studying the paths of black-market exchange rates, second-economy prices, hoarding stocks, and privately held dollar balances following policy reforms. We discuss conditions for overshooting and related dynamics of exchange rates and prices following: official exchange-rate adjustments, price reforms, and altered risks of monetary confiscation or currency reforms. The Foreign Currency Exchange Services industry was aided over the five years to 2018 by continued growth in international trade and travel. Downstream corporate clients rely on industry operators for business-to-business payment services, while downstream individuals generally use credit and debit card processing services and currency exchange offerings. Moreover, technological change, in the form of improved debit card offerings and mobile apps, have made industry services more convenient. Most industry operators are small in size and handle a correspondingly small number of transactions. Annual gross foreign currency exchange transactions exceed $500,000 for a small minority of industry operators. However, there are a few large players that operate in the industry, including Travelex Group, which has locations throughout the United States. Over the five years to 2023, the factors that affect downstream demand levels, including trade and travel, are anticipated to continue improving during the five-year period.

2025

The debate on the direction of causality between financial development and economic growth has been comprehensively growing since 1980s in theoretical and empirical literature. The existing literature provides conflicting views of this relationship. For this reason, the purpose of this paper is therefore to empirically investigate the direction of causality between finance and growth using panel data cointegration and GMM system approaches. If it is acknowledged that financial development stimulates growth, then economic growth may reciprocally stimulate financial development. The empirical analysis is based on a sample of 10 countries, 6 from the OECD region and 4 from the MENA region during 1990-2006, reports the following results: a panel data cointegration analysis confirms a long-term relationship between financial development and economic growth for the OECD and the MENA countries. The GMM system approach shows that financial development and real GDP per capita are positively and strongly linked. The error correction model approach shows that causality is bi-directional for the OECD countries and unidirectional for the MENA countries, i.e. economic growth stimulates financial development.

2025, Economics Bulletin

This paper studies the relationship between financial development and economic growth in a large sample of developing, emerging and advanced economies over the recent period. Estimation results based on various nonlinear threshold regression models do not confirm the too-muchfinance-is-bad hypothesis. We cannot indeed identify a tipping point beyond which financial development has a clear negative relation to economic development. Our results also show that banking and market finance are complementary. The positive effect of bank credit on growth is larger in stock markets that are deeper. But the thresholds above which complementarity kicks in are rather low level. Finally, the effects of bank and market finance do not seem to depend on economic development and trade openness.

2025

Economic instability in emerging economies presents substantial challenges for firms, particularly in accessing debt funding, due to heightened perceived risk. This often results in a less favorable debt-toequity ratio and complicates the overall composition of capital structure. Macroeconomic conditions play a pivotal role in influencing investor sentiment and risk perceptions, which in turn complicate capital structure decisions. This study aims to investigate the impact of various macroeconomic variables on the capital structure decisions of firms within the Indian automobile and automobile ancillary sectors over a comprehensive 17-year period from 2004 to 2020. They are utilizing secondary data collected from reputable sources like ProwessIQ, the Reserve Bank of India, and financial reports. The study employs various statistical tools, including descriptive statistics, correlation analysis, and dynamic panel data regression models, to analyze the data. The findings indicate that macroeconomic variables significantly shape the optimal capital structure decisions in the Indian automotive sector. Key variables such as the bank rate, GDP growth rate, inflation rate, and public debt substantially impact leverage ratios. For instance, an increase in the bank rate or public debt levels correlates with higher leverage ratios, suggesting that firms adjust their capital structures in response to changes in these macroeconomic indicators. This study provides valuable insights into the complex interplay between macroeconomic conditions and capital structure financing decisions. By highlighting the significant influence of these broader economic factors, the research underscores the necessity for firms, especially in emerging economies like India, to consider these determinants when making financial decisions. The findings thus contribute to a deeper understanding of capital structure dynamics in the face of macroeconomic challenges within the Indian automotive sector.

2025, International Journal of Research and Innovation in Social Science

This paper examined the determinants of health inequity in fifteen (15) Sub-Saharan African economies for a period of seventeen (17) years spanning from 2004 to 2020. Data were sourced from the World Bank (2020), World Food Programme (2020), WHO Global Health Expenditure database (2020), and global database on child growth and malnutrition (2020). Child malnutrition measured by incidence of malnourished children under the age of five was used to proxy health inequity, while net official flows from world food programmes, income poverty, GDP per capita, and domestic general government health expenditure per capita were used as explanatory variables. Panel Fully Modified Least Squares (FMOLS) regression technique was employed. The result showed that one-period lagged of health inequity (HINEQ (-1)), one-period lagged of domestic general government health expenditure per capita (DGGHEPC (-1)), net official flows from world food programme (NOFWFP), and income poverty (INPOV) exerts positive impact, whereas GDP per capita (GDPPC), INPOV (-1), NOFWFP (-1) and DGGHEPC exerts negative impact on the Child malnutrition in Sub-Sahara Africa. However, only NOFWFP (-1), INPOV and DGGHEPC with their lagged values had a statistically significant impact on Child malnutrition in Sub-Sahara Africa. Thus, there is need for budget increase allocation to health and humanitarian sectors in Sub-Saharan African to boost basic health and nutritional needs particularly for disadvantaged households. Also, GDP per capita should be raised in order to reduce poverty levels and combat child malnutrition.

2025

2025, Limes

Il moto che porta all'Unità coincide col picco della Piccola era glaciale, che contribuisce a spingere quasi metà degli italiani sotto la soglia di povertà. L'Italia perde il treno della rivoluzione industriale. Solo a inizio Novecento il... more

2025, SSRN Electronic Journal

Baseline Results (Financial Development Indicator: Liquid Liabilities) 2 Results on Whether Effects in Developing Countries and Developing Asia Differ (Financial Development Indicator: Liquid Liabilities) 3 Results on Whether Growth Effects Vary with Level of Financial Development and Openness (Financial Development Indicator: Liquid Liabilities) 4 Results on Whether Foreign Exchange Rate Regimes Matter (Financial Development Indicator: Liquid Liabilities) 5 Baseline Results on Impact of FDI and Non-FDI on Growth 6 Results on Whether Effects of FDI and Non-FDI on Growth Differ in Developing Countries and Developing Asia FIGURES 1 Liquid Liabilities and Lending-Deposit Spread 2 Liquid Liabilities and Overhead Costs 3 GDP per Capita Growth and Total Openness, with Liquid Liabilities as Financial Development Indicator and Under de Facto Foreign Exchange Regimes 4 GDP per Capita Growth and Total FDI, with Liquid Liabilities as Financial Development Indicator and Under a de Facto Foreign Exchange Rate Regime 5 GDP per Capita Growth and Financial Development Measures, with Total Capital Flows as Openness Indicator and Under a de Facto Foreign Exchange Regime ABSTRACT A sound and efficient financial system is an indispensable ingredient of economic growth. It consists primarily of banks and capital markets, which channel savings into investments and other productive activities that contribute to economic growth and augment the economy's productive capacity. This paper explains the importance of financial development and openness. It sifts through the literature on the relationship between both variables and economic growth. It then reports the results and discusses some original empirical analysis. In addition to using more updated data, which extend the sample period to include some postcrisis years, the analysis examines whether country characteristics and factors such as the exchange rate regime affect the finance-growth nexus.

2025, Journal of Yasar University

This study highlights the crucial role of financial development in driving economic growth across different income groups, emphasizing the need for targeted policy approaches to maximize its impact. For this purpose, the finance-growth relationship in 65 countries of five income groups, from 2001 to 2020 are investigated. Utilizing panel models, including unit root tests, panel cointegration, and robustness checks via FMOLS and CCE methods, findings from 65 countries from five different income groups from indicate that financial development significantly boosts income in high-income countries, despite some inconsistencies. In these income groups, factors like investment expenditure, labor, and trade positively influence GDP per capita, while government expenditure and CPI negatively impact it. For lower-and upper-middle-income countries, financial structure also enhances GDP, albeit with the varying significance of trade openness and CPI. However, financial development does not significantly affect income in low-income countries, suggesting a prerequisite development level for finance to stimulate growth. The findings demonstrate that the general development of financial structure substantially impacts economic growth. In light of these findings, developing comprehensive but separate policy implications that address all five income groups is imperative.

2025, Social Science Research Network

July 2004 * World Bank ** Robert H. Smith School of Business of the University of Maryland *** Bank for International Settlements BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The views expressed in them are those of their authors and not necessarily the views of the BIS.

2025, Journal of Money, Credit and Banking

findings Cull, Senbet, and Sorge examine the effect of different insurance leads to financial instability in lax regulatory design features of deposit insurance on long-run financial environments. But in sound regulatory environments, development, defined to include the level of financial deposit insurance does have the desired impact on activity, the stability of the banking sector, and the financial development and growth. quality of resource allocation. Their empirical analysis is Thus countries introducing a deposit insurance scheme guided by recent theories of banking regulation that need to ensure that it is accompanied by a sound employ an agency framework. regulatory framework. Otherwise, the scheme will likely The authors examine the effect of deposit insurance on lead to instability and deter financial development. In the size and volatility of the financial sector in a sample weak regulatory environments, policymakers should at of 58 countries. They find that generous deposit least limit deposit insurance coverage.

2025, Islamic Research and Training Institute, Islamic …

In this paper, we estimate the operational efficiency in 17 Sudanese (Islamic) banks between 1990-2000. We adopt the stochastic cost frontier approach. Our findings show that Islamic banks do not create inefficiency per se. Furthermore, although the average efficiency is almost stable between 1990-2000, there are wide efficiency differences across Sudanese banks. Despite the small size of the foreign banks, they are more efficient than state-owned and joint-ownership banks. Sudanese banks are not ready yet to confront the globalisation challenges. We also examine the sources of inefficiency by estimating a second stage inefficiency regression. Several interesting findings emerged. First, the increase in the level of foreign and private shares in Sudanese banks should enhance the cost efficiency in the banking sector. Second, in order to improve efficiency, Sudanese banks should increase their (low) paid-up capital ratio but not through merger and acquisition activities. Third, Sudanese banks have an advantage in murabaha and musharaka modes of finance which are not fully utilised yet. Fourth, Sudanese banks should implement serious programmes for human capital development in order to reduce the current level of cost inefficiency.

2025, Економіка та держава

Економiка та держава № 7/2015 78 ПОСТАНОВКА ПРОБЛЕМИ Інвестиційний кредит як інструмент акумуляції й перерозподілу фінансових ресурсів забезпечує функ ціонування потужного механізму стимулювання розвит ку інвестиційної та виробничої сфер національної еко номіки, а також усієї системи суспільно економічних відносин. В умовах трансформаційних перетворень він набуває рис головного методу постачання інвестицій них ресурсів, забезпечуючи ефективну мобілізацію коштів та економічно доцільне задоволення інвестицій ного попиту економічних агентів на ресурси довгостро кового характеру.

2025

نداء عاجل إلى رؤساء ورئيسات المنظومة الأكاديمية في إسرائيل نحن، أعضاء وعضوات الهيئة الأكاديمية والإدارية في مؤسسات التعليم العالي في إسرائيل، ندعوكم للتحرك الفوري وتجنيد كل ثقل الأكاديمية الإسرائيلية من أجل وقف الحرب الإسرائيلية على غزة.... more

2025

The main focus of this paper is to investigate the long run dynamic relationship between Shariah and non shariah stock indices in four GCC countries namely Oman, Qatar, Kuwait and Bahrain.. The panel techniques are used for the estimations. The traditional panel methods used are the fixed effects and the random effects models. However, these methods are restricted in that they assume away dynamics and heterogeneity of the coefficients. We augment these methods by applying pooled mean group (PMG) and mean group (MG) estimators which allow for both dynamics and heterogeneity of the coefficients. One particular interest of ours is the test of the assumption of PMG that the long-run coefficients are constant unlike the MG estimates. We provide results of all four estimators and compare their estimates which have implications for the policy makers.

2025, Documento de Trabajo

In this paper, we use the econometric frontier approach to estimate efficiency measures of the transformation of human capital into earned income in the Chilean labor market for the period 1957-1998. We find that the mean efficiency is... more

2025, … de Trabajo (Instituto de Economía PUC)

1. INTRODUCTION 2. RECEIVED KNOWLEDGE 3. STYLIZED FACTS 4. EMPIRICAL ANALYSIS 4.1 Economic Growth 4.2 Exports 4.3 Money Holdings 4.4 Inflation 4.5 Remnants of the past 5. CONCLUSIONS

2025, Paper prepared as part of the project …

This paper develops a model of the real exchange rate derived from first principles. The model solves for a single equation framework that controls for mainstream exogenous and policy fundamentals (such as TOT, productivity, trade openness and government consumption) as well as others not frequently analyzed in the literature. These include a model-consistent proxy for 'sustainable' current account, which reflects the composite effects of export proceeds, debt service payments, development aid and other unrequited transfers as well as net capital inflows and change in reserves; a measure of financial development relative to the OECD frontier; and, taxes on nontradables. The model was estimated using the pooled mean group model (PMG) over 1980-2003 for a sample of 84 countries, including 37 from SSA. The PMG generates country-invariant estimates of the long-run slope parameters, while allowing for country-varying intercepts, equilibrium-correction parameters and other short-run effects. Accounting for plausible shocks to the fundamentals drawn from historical time series data suggests that productivity was the most influential fundamental, followed by current account, the combined instruments of fiscal policy, and the terms of trade, openness and financial depth. Analysis of these orders of magnitudes also suggests that a combination of expenditure restructuring, reduction of taxes on nontradables and policies for increased openness to trade could lead to an equilibrium depreciation ranging from 30 to 40%. Therefore, there appear to be an effective policy response to other influences on RER that may be driven by exogenous (TOT and aid) or less policy-responsive (productivity) fundamentals. Prepared as part of the World Bank's project on "Modeling Real Exchange Rate Misalignment and its Impact in and outside Africa," sponsored by the Africa Region and the Development Economic Research Group. The views expressed in this paper do not necessarily reflect the official position of the World Bank, its Board of Directors or affiliated institutions. The authors would like to acknowledge the very able research support by Linda Kaltani. 1 The RER is generically defined as the relative price of non traded goods to traded goods. More detailed empirical definition is provided in section IV. 2 According to the definition of the RER adopted here, an RER overvaluation is associated with a higher level of RER relative to its equilibrium.

2025, Journal of African Economies

2025

This paper provides an empirical analysis of the presence and determinants of the underwriting cycle in non-life insurance for France for the industry and for two individual lines which one long and one short for the period 1963-2004 and 1982-2004. First, the estimation of the AR(2) process of the rate of growth of premiums shows the presence of a cyclical behavior since 80 for the aggregate sector and for the automobile line. Second, we aim to determine their causes. For that, we consider the amount of claims and expenses, equities and returns on financial assets. We adopt a multivariate approach and we estimate an error correction vector model that allows the distinction between the e¤ects of short and long term. We provide evidence of causality between different variables and we end with an impulse analysis. The empirical results that we get are interpreted with reference to principal hypothesis made in the literature to explain the cycle and financial model of insurance pricing....

2025, International Review of Management and Business Research

IntroductionFinancial inclusion (FI) is a condition in which all people have access to the financial system, not only to banks, but also other financial institutions. These institutions are encouraged to increase the distribution scope of banking services to rural areas (Yesi and Kasmiati, 2013:21). Financial inclusion strategy is indispensable for Indonesia because the financial inclusive level in Indonesia is 32%; this means 68% of the poor are not touched by banking financial services (Mulya E,S, 2012:1). The condition is worse than the exclusive financial world average which is only 55.14% (McKinsey, 2010:10). Disha Bhanot, et.al. (2012:467) stressed that the poor to be excluded because of: access exclusion, i.e. unavailability / remote availability of banking services; price exclusion; condition exclusion i.e. inappropriate conditions attached to financial product; marketing exclusion; and self exclusion, i.e. cultural/religious/psychological barriers and mistrust etc.The objec...

2025

Bu çalışma, bireylerin finansal karar alma süreçlerinde finansal zekâ (financial intelligence) ve bireysel psikolojinin nasıl etkileşime girdiğini incelemektedir. Geleneksel finans kuramları bireylerin rasyonel kararlar aldığı varsayımıyla hareket ederken, son yıllarda gelişen davranışsal finans yaklaşımı, kararların büyük ölçüde bilişsel önyargılar, duygular ve psikolojik faktörlerden etkilendiğini ortaya koymuştur (Kahneman & Tversky, 1979). Finansal zekâ; gelir yönetimi, tasarruf, yatırım ve risk analizi gibi temel yetkinlikleri kapsarken, psikolojik faktörler bu yetkinliklerin ne ölçüde kullanılabildiğini belirlemektedir. Örneğin, kaybetme korkusu (loss aversion), bireylerin mantıklı yatırım kararları almasını engelleyebilir . Aynı şekilde, özgüven yanılgısı (overconfidence bias), kişilerin gerçek dışı finansal riskler almasına neden olabilir . Araştırmalar, finansal IQ'su yüksek bireylerin dahi, stres, kaygı, sosyal karşılaştırma gibi psikolojik etkenler nedeniyle irrasyonel kararlar alabildiğini göstermektedir . Bu bağlamda, sadece finansal bilgiye sahip olmak yeterli değildir; bu bilgiyi etkin biçimde kullanabilmek için psikolojik farkındalık ve duygusal dayanıklılık da gereklidir. bireylerin finansal kararları yalnızca bilgi temelli değil, aynı zamanda psikolojik ve duygusal temellidir. Bu nedenle, finansal eğitim programlarının yalnızca bilgi aktarmakla kalmayıp, psikolojik dayanıklılığı ve bilişsel farkındalığı da artıracak biçimde tasarlanması önem arz etmektedir.

2025, Islamic Azad University, Firuzkuh Branch

Quarterly_Journal_of Economic Modelling is an open-access, double-blind, peer-reviewed journal published by Islamic Azad University, Firuzkuh Branch. This journal has been established to provide an intellectual platform for national and international researchers working on issues related to economic research in the field of quantification and economic modeling. The Journal was dedicated to the publication of highest-quality research studies that report findings on issues of macroeconomics, microeconomics, international trade, national and regional, monetary and financial, econometrics, environmental, industrial, public, and health economics.

2025, IJARW

This study examines the impact of financial technology (Fintech) digitization and the implementation of Environmental, Social, and Governance (ESG) standards on brand equity and operational performance of commercial banks in Vietnam. As the banking sector undergoes rapid digital transformation, the application of Fintech alongside adherence to ESG standards not only enhances operational efficiency but also strengthens brand value, providing sustainable competitive advantages. Utilizing a linear regression model and analyzing panel data from 12 major banks in Vietnam over the period of 2020-2024, the research finds that both Fintech and ESG have a positive and statistically significant impact on the return on assets (ROA), a key measure of operational performance. Notably, the interaction between Fintech and ESG further amplifies the positive effects, indicating that the combined influence of these factors creates more significant outcomes than their individual contributions. The study also reveals that ESG practices play a crucial role in enhancing the effectiveness of Fintech, ultimately leading to greater sustainability and enhanced brand reputation. This research provides valuable insights for banks aiming to leverage both Fintech and ESG to improve their performance and long-term brand equity in the competitive banking industry.

2025, IJARW

This study analyzes the impact of financial technology (Fintech) on the performance of commercial banks in Vietnam within the context of digital transformation and sustainable development. Based on a linear regression model using simulated data, the research examines the catalytic role of ESG (Environmental, Social, and Governance) factors in the relationship between Fintech and bank performance, measured by the Return on Assets (ROA) indicator. The findings show that Fintech has a positive and statistically significant effect on bank performance, while ESG serves as a positive moderating factor that amplifies the effectiveness of Fintech. The results also indicate that bank size and capital adequacy ratio remain fundamental drivers of operational performance. Based on these insights, the study offers policy implications for banks, investors, and regulators, emphasizing the need to integrate Fintech strategies with ESG-oriented development across the financial and banking sector.

2025, SIingaporean Journal Of Business EconomIcs and Management Studies

2025, Internation journal of research and innovation in social sciences

To examine the current state of financial inclusion in Nigeria and its implications for economic growth. 2. To analyze the relationship between capital market development and economic growth in Nigeria. 3. To investigate the interaction... more