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

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- Corporate Governance, Financial development, Path Dependence, United Kingdom
- by Daniel Lederman
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- Business, Emerging Economies, East Asia, Economic Theory

As a monetary authority and regulator of the financial system, Reserve Bank of India has done a commendable job. This paper has focused on the role played by RBI in the regulatory framework of Indian financial system as a regulator and supervisor and also analyzed whether granting autonomy to RBI can contribute to the growth of the country. Review of literature has shown that majority of the central banks in the world only have instrumental independence which shows that the central banks are free to only choose the means to achieve the objectives set by the government and many of the central banks have also shown the evidence of the government's influence on its decision making. Doing Business Report 2014(World Bank), investigating the regulations that enhance or constrain business activity, has placed India at low ranks in almost all parameters. Furthermore inflation and independence of a central bank has been seen to have an inverse relation. Secondary data along with supporting primary data were adopted for collecting the requisite information for this study. The study has revealed that if RBI achieves autonomy along with ensured accountability it can help the fiscal system to tone up and ensure more transparency in the entire budget making process. It is seen important for the government and the regulators in India to develop conventions and practices which will serve the goal of preserving financial stability without eroding the autonomy of the regulators for the growth of its economy. The Development Financial Institution at the international level IMF has also suggested making the RBI free from the government's influence by removing certain provisions from the law which can undermine its independence from the government.

- by Maumita Choudhury and +1
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- Financial development, Autonomy, RBI, RBI autonomy

The study examined the dynamic nexus between carbon footprints, nonrenewable energy and renewable energy consump- tion, financial development and economic growth, and combating climate change by using a dataset of selected 13 Asian emerging economies (Bangladesh, China, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, Philippines, South Korea, Sri Lanka, Thailand, and Vietnam) from 1995 to 2020. This study empirical analysis uses the second generation of panel coin- tegration techniques to compensate for cross-sectional dependency and slope heterogeneity. The mean group, the common correlated effects mean group, and the augmented mean group are used to estimate the long-run equations. The findings suggest that economic growth and nonrenewable energy consumption exacerbate environmental degradation, but renewable energy consumption mitigates the total adverse effects on the environment over time. Additionally, economy-specific findings examine how the impact of nonrenewable energy and renewable energy consumption on the carbon footprint depends on energy consumption level. Furthermore, the Dumitrescu-Hurlin causality test reveals a statistically significant bidirectional correlation between financial development, carbon footprints, economic growth, and consumption of nonrenewable energy and renewable energy. Finally, the study says that Asian emerging economies should use more renewable energy and be more efficient in order to reduce their carbon footprints.

- by Najia Saqib
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- Renewable Energy, Economic Growth, Financial development, Carbon Footprint

This study examines the relationship between green energy, non- renewable energy, financial development, and economic growth with carbon footprint by using panel data from 63 emerging and developed economies for the time period from 1990 to 2020. The study utilises second-generation panel data econometrics techni- ques to investigate cross-section independence and adjust for cross-section heterogeneity. The studies also used the CIPS and CADF unit root tests, Wester Lund bootstrap cointegration techni- ques, and AMG and CCEMG heterogeneous panel causality techni- ques. The findings show that, over the long run, all variables are cointegrated. Additionally, the data indicate that non-renewable energy consumption leads to carbon footprint, whereas green energy reduces environmental degradation and supports the reduction of environmental hazards. Likewise, financial develop- ment has a considerable negative effect on environmental deg- radation. A statistically significant bidirectional correlation is found between green energy, nonrenewable energy, financial development, economic growth, and carbon footprint according to the Dumitrescu-Hurlin causality test. Finally, according to the findings of the study, the economies that were examined should use more green energy in order to reduce their carbon footprint.

- by Najia Saqib
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- Renewable Energy, Economic Growth, Financial development, Carbon Footprint

The manufacturing sector is the backbone for the development of an economy. Numerous studies investigated the impact of aggregative energy consumption on environmental degradation by using typical econometric techniques. To correct this gap, our study uses energy consumption and environmental degradation only in the manufacturing sector of Pakistan for the period 1985 to 2018. Our study also demonstrates the symmetric and asymmetric behaviour of energy consumption with carbon emissions by using a recently developed methodology by Shin et al. (2014). The findings of linear autoregressive distributive lag model shows that energy consumption and financial development intensify environmental degradation, while foreign direct investment and globalization mitigate environmental degradation that leads to validate pollution halo hypotheses in Pakistan. However, nonlinear autoregressive distributive lag results confirm the asymmetric behaviour of energy consumption with co 2 emission. This study recommends the policies for policymakers in Pakistan to consider asymmetric behaviour of energy consumption as well as the installation of renewable energy sources and technological improvements in the industrial sector needed to enhance environmental sustainability. Further, there is a need to enhance globalization and foreign direct investment for Pakistan to achieve its environmental targets.

- by Gulcin Ozkan
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- Economics, Financial development, Applied Economics Letters, Public Debt
- by Mohamed Trabelsi
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- Economic Growth, Financial development, Panel Data, Developing Country

This research work is a contribution to the study of the problem of economic growth in Haiti. Indeed, since the end of the 20th century, the country has suffered from "economic dwarfism" characterized, among other things, by a relatively small gross domestic product, a per capita income that is among the lowest in the Caribbean, and a large segment of the population that lives in food insecurity. Considering the literature on the relationship between financial development and economic development, we write this paper with the objective of studying the contribution of the banking sector to the country's economic performance and highlighting the role that this sector can play in promoting economic growth. To achieve this task, in addition to the analytical research method, we use econometric methods and tools such as: a multiple regression model, a vector autoregressive model (VAR) to take into account the bias of the contemporaneous relationship between the variables, the concept of impulse response functions and causality tests in the sense of Granger. Our data sample covers the period from 1990 to 2019. We find that credit to the private sector, admittedly the best indicator of financial development, has a positive but small impact on the evolution of the country's real GDP. This link disappears when this indicator is lagged by two periods. At the same time, banking stability does not benefit the real sector. Moreover, we find no causal relationship between financial and real indicators according to Granger.
Keywords : economic growth, banking sector, multiple regression, VAR model, Granger causality.

The purpose of the present study is to explain the long-run and causal effects of innovation, financial development , and transportation infrastructure on CO 2 emissions using the combined cointegration and wavelet coherence approaches over the period from 1971 to 2018, while using economic growth as a control variable in the model. The outcomes of the Bayer-Hanck cointegration test show that there is an important cointegration equation among CO 2 emissions, innovation, financial development, transportation infrastructure, and real GDP. Moreover, the findings from a wavelet power spectrum reveal that there is a significant vulnerability in innovation , financial development, transportation infrastructure, and CO 2 emissions at different time frames and frequencies. Furthermore, the outcomes of wavelet coherence approach reveal that (i) Innovation is observed as a significant predictor of CO 2 emissions over the period from 2007 to 2013; (ii) In the long run, there are negative correlations between CO 2 emissions and financial development; (iii) Over the periods from 2000 to 2015, and from 1985 to 1989, transportation significantly causes CO 2 emissions. Our findings have substantial policy implications that suggest there is a need to strengthen innovation and transportation infrastructure to achieve environmental sustainability targets.

- by Dervis Kirikkaleli
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- Financial development, Transportation, China, Technological Innovation
- by Faruk Ulgen
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- Emerging Economies, Financial Liberalization, Financial development, Financial Crisis
- by Aviral Tiwari
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- Economic Growth, Energy Policy, Financial development, Multidisciplinary

In this study we consider the link between financial development and economic growth from 1971 to 2009 in Ethiopia. Most theoretical and empirical works in the literature suggest that deeper financial market promotes economic growth. We take this hypothesis to the test of conducting descriptive and empirical study using Ethiopia's data. In the empirical analysis we estimate an investment equation applying the Stock Watson Dynamic OLS procedure. The result suggests that the financial development indicator positively and significantly explains investment suggesting that financial development and economic growth have direct and strong relationship. The argument that financial development and economic growth have positive linkages is supported by results of both descriptive and empirical analysis. But the argument that financial development determines economic growth appears to be inconclusive. The Granger causality test result suggests bidirectional influence between financial development and economic growth.

- by Ephrem A H A D U Helawi and +1
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- Economic Growth, Financial development

Different types of conflict have different effects on the financial system. Country priorities for reconstruction therefore vary accordingly. Nevertheless, the following problems repeatedly occur in reconstruction. First, central banks... more

- by Tony Addison
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- Financial development, Financial System, Financial Sector, Banking system
- by Richard Sylla
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- Economic History, Economic Growth, Financial development, Applied Economics
- by Nicholas M. Odhiambo
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- Economics, Economic Growth, Financial development, Applied Economics

This paper investigates the effects of financial markets development on the financing choice of firms in developing and developed Asian market economies. The panel data regression models were used for a mean total of 6506 non-financial listed companies during 1995-2016 for 12 Asian economics. The estimated econometric models included short-term, long-term and total debt-equity ratios as dependent variables which were regressed on financial markets development variables (such as banking sector development and stock market development indicators) along with macroeconomic variables (such as inflation, GDP growth, FDI and firm-specific variables (such as ratio of total assets to GDP, ratio of dividends to total assets and ratio of net sales to net fixed assets) as control variables. Also, financing choice of firms in developed and developing stock markets was estimated by splitting the sample into subsamples of developing and developed stock markets. The financial development indicators such as domestic credit to private sector by banks and stock market capitalization exhibited contrasting differences between the selected developing and developed Asian economies. The econometric results indicated that the banking sector and stock market development indicators significantly have opposite effects on the financing choice of the selected firms: banking variable is associated with a rise in the debt-equity ratio whereas stock market variable is associated with a fall in leverage ratio. The econometric effects of stock market development on firms financing choices in developing and developed stock markets showed a remarkable divergence. The evidence indicated that the estimated coefficient of the banking sector indicator in the developed stock market subsample was consistently negative for all the three leverage ratios whereas the coefficient in the developing stock market subsample was positive and significant. The important conclusion of the study is that though banking sector and stock market play different roles are however, complementary to each other suggesting that the policymakers should aim to develop banking sector and stock market simultaneously which will help firms to design their optimal financing choices.

- by Chongwoo Choe
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- Economics, Economic Growth, Financial development, Financial System
- by Florencio Lopez-de-silanes
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- Finance, Financial development, Profitability, Investor protection

We have analyzed the short term and long term linkages between the sectoral indexes of
Bombay Stock Exchange in India by using the daily data on nine sectoral indexes for the period
23rd August 2004 to 31st June 2010. After confirming the same order of integration of the study
variables from the unit root test incorporating endogenously determined structural breaks,
structural cointegration test has been carried out followed by VECM , Impulse response functions
and variance decomposition analysis. The cointegration analysis results indicate that most of the
sectoral indexes in India are cointegrated with at least one of the other indexes indicating that the
sectoral indexes posses’ useful information about the movements of other indexes. This is
confirmed by the Impulse response function analysis also. The comovements between the
sectoral indices indicate that the Bombay stock exchange is not weak form efficient and the
possibility of sectoral portfolio diversification is limited

- by Kul Luintel
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- Economics, Economic Growth, Principal Component Analysis, Financial development
- by Jonathan Morduch
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- Finance, Economics, Poverty, Financial development

The present study aims to explore the long-run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global framework. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency-domain causality tests are employed. Empirical evidence confirms the existence of a long-run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long-run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global framework, the study, therefore, recommends that in order to increase environmental quality, global policy-makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries.

- by Dervis Kirikkaleli and +1
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- Economic Growth, Financial development, Technological Innovation, Environmental Sustainability

La elevada disponibilidad de financiamiento internacional, facilitada en forma temprana por su condición de “dominion” británico y por su buen record de pagos internacionales, asociada a su vez a un sistema financiero interno relativamente diversificado y profundo desde antes de los inicios del siglo veinte, constituyen dos rasgos sobresalientes de la economía australiana que han permanecido aún en el período de “represión financiera” interna más intensa y de controles de capitales que va desde la depresión de los treinta hasta los años setenta. La posterior liberalización financiera produjo elevados costos inmediatos, pues se le atribuye la ola especulativa de los "rugientes años ochenta" ("the roaring eighties"), seguida de quiebras en el sector financiero y corporativo y de la profunda recesión de inicios de los noventa. Sin embargo, estos costos parecen haber sido compensados posteriormente por beneficios en materia de fortalecimiento y de diversificación del sistema financiero australiano y de mejora de su posición internacional, hasta convertir a Australia en una plaza financiera competitiva en ciertas actividades en el nivel regional. Nos preguntamos sobre qué elementos ha basado Australia su desempeño económico, específicamente queremos dilucidar si entre las explicaciones de carácter histórico, institucional, y económico, el acceso al financiamiento externo y el desarrollo del sistema financiero interno australiano han desempeñado un papel relevante en el éxito de la economía australiana y en su “resiliencia” a los choques externos, y finalmente, si este modelo de crecimiento es sostenible.

- by Geneviève Marchini
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- Latin American Studies, Development Economics, Australia, Asia Pacific Region

This study analyzed the impact of political instability on financial development of Pakistan. OLS regression is used for the estimation of data. Time series data is used for the study. 40 years are included in the time series from 1972 to 2011. The variable of interest is political instability controlling the effects of trade openness, legal protection and GDP/capita. The regression results showed that political instability has negative significant impact on financial development of Pakistan. Trade openness is positive but insignificant with financial development. Legal protection and GDP/capita showed positive and significant impact on the financial development of Pakistan.

- by IJMSBR Open Access Journal
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- Financial development

This volume focuses on regional development banks (RDB) and provides a comprehensive, comparative and empirically informed analysis of their origins, evolution and contemporary role in the world economy. A volume on RDB is timely for four major reasons. First, since their establishment, the importance of RDB lending has increased significantly. To illustrate, the European Investment Bank (EIB) alone lent more overall than the World Bank, the world’s largest global multilateral development bank (MDB), from 1991 onwards (Clifton et al. 2014 and 2017b). Even when specific RDB lend less in total than their MDB counterparts, the loans that these RDB make to their member states are often larger than the loans received from MDB. In other words, RDB may be more A second reason for the timeliness of this volume is that RDB have experienced a
renaissance over the past few years. In the age of what Angus Maddison and the OECD (2010) label ‘Shifting Wealth’, we are witnessing the relative decline of the West and the rise of new economic powers in the East and South. Global MDB and most RDB were established during a specific historical moment—at the end of the Second World War and over the following decade—and their governance and shareholder structures reflect this specific political-economic juncture. As the relative size of member state economies shifts, along with their political clout or even military might, a major question is the extent to which the incumbent banks’ governance and shareholder arrangements will be changed toreflect this development (Ravallion 2016). Jakob Vestergaard and Robert Wade (2013,2015) argue that there has been determined resistance from the US, Japan and a number of European governments to power sharing with rising economic powers within the World
Bank and IMF. The debate over power sharing is only going to intensify as the economic and political weight of players in the East and South, and particularly, the People’s Republic of China (PRC), increases (Mahbubani 2013). This re-assertion of East and South has included the establishment of new national and regional evelopment banks. In particular, the creation of the Asian Infrastructure Investment Bank (AIIB) can be explained in large part to Chinese government frustration with the operation of existing RDB and global MDB and as an expression of Chinese ambitions for the future (Xu, this volume). MDB (Griffiths-Jones et al. 2008). A major line of analysis associated with this literature
is the extent to which RDB have advantages associated with greater geographical, economic and cultural proximity with regard to their shareholders and the countries to which they provide loans, than global MDB. RDB are thought to be better positioned to give voice to their members, especially to small or medium-sized countries, which may otherwise struggle to be heard in global MDB. This in turn leads to the expectation that RDB are better placed to respond to the needs and demands of their members. RDB are also considered to be more flexible, relying often on informal mechanisms of peer pressure, as opposed to harder conditionality. Furthermore, RDB are thought to present an arena
whereby agreements through negotiation are easier than in global MDB, largely based on the assumption that members are both lenders and borrowers (Griffith-Jones et al. 2008). Given the increased importance of RDB it is important to study them on their own terms. Fourth, the time is ripe to examine RDB in the context of the aftermath of the international
financial crisis and the Great Recession of the late 2000s, as criticism of the role of both global MDB and RDB has intensified. This recent wave of criticism is not unprecedented. Each major international economic and financial crisis that occurred since the Second World War triggered a reassessment of the very foundations and sustainability of global MDB and RDB. The first wave of criticism emerged in parallel to the debt crisis after the collapse of the Bretton Woods system in the 1970s(Babb 2013). Criticism intensified again in the aftermath of the Cold War in the 1990s, with the collapse of most political regimes that had pursued a command economy, particularly the Union of Soviet Socialist Republics (USSR), followed by their economic transition to a form of capitalism and an era of rapid globalisation. Since the 2008 crisis—which mainly affected the richest countries, notably the United States (US) and in Europe—critics have asserted that development banks did not do enough (Griffiths Jones et al. 2008).

This paper examined the impact of financial development on environmental quality in Malaysia, using sum of financial access, depth, and efficiency as auxiliary variables for financial development from 1987 to 2020. Autoregressive distributed lag method was used to examine whether level relationship (long run) existed among the variables. The paper found long run relationships among the variables. Financial development, population growth, economic growth and energy usage positively significantly contribute to environmental degradation in both short and long run while squared economic growth significantly enhanced environmental quality in both short and long run. Hence, Environmental Carbon Kuznets Curve (ECKC) hypothesis holds in Malaysia

- by IAEME Publication
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- Economic Growth, Malaysia, Financial development, Carbon emission

Principal rival de Hong Kong como Centro Financiero Internacional (CFI) dominante en Asia, Singapur constituye un claro ejemplo de una especialización productiva lograda sobre la base de decisiones estratégicas y de un amplia intervención gubernamental. este texto se plantea las preguntas siguientes: ¿Cuáles han sido los fundamentos de la expansión del CFI de Singapur y qué tipo de políticas públicas se han aplicado a la esfera financiera? ¿Qué papel desempeñó el CFI a lo largo de los años y cuales son sus perspectivas de desarrollo? Para ello, ubica el desarrollo del CFI en el contexto de la trayectoria de desarrollo económico de Singapur desde su independencia en 1965. En una primera sección, se presenta a grandes rasgos el desarrollo económico de Singapur desde su independencia mientras una segunda sección analiza las políticas aplicadas para desarrollar el sistema financiero de Singapur desde finales de los años 60 hasta la actualidad. Se examina luego la estructura financiera de la ciudad-estado, y se concluye estableciendo sus perspectivas, ventajas y desafíos.

- by Geneviève Marchini
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- East Asia, East Asian Studies, Asia Pacific Region, Financial development

ÖZET: Geleneksel finans beklenen fayda ve rasyonel tercih olmak üzere iki temel varsayıma dayalı olarak gelişim göstermiştir. Bununla birlikte bu varsayımların yeterince gerçekçi olmadığı ileri sürülerek yoğun bir şekilde eleştirilmiştir. Davranışsal finans alanının temeli ise beklenti teorisine dayanmaktadır. Bu teoriye göre bireyler tam rasyonel hareket edemezler ve kayıplara, aynı miktarda kazançlardan daha fazla anlam yüklerler, riskten ve kayıptan kaçınma davranışı gösterirler. Davranışsal finans bireylerin davranış ve duygusal kalıplarını karar verme süreçlerine dahil ederek finansal karar verme süreçlerinde kullandıkları akıl yürütme kalıplarının daha gerçekçi olarak anlaşılmasını amaçlamaktadır. Bu çalışmada, geleneksel finans ve davranışsal finans alanları ile bu iki alanın temelleri üzerinde durulmuş ve genel prensipler üzerinden karşılaştırılarak tartışılmıştır. Bu çalışma, konuya ilişkin geniş kapsamlı bir bakış açısı yansıtmaktadır. Çalışmanın hedefi, geleneksel ve davranışsal finans disiplinlerinin ortaya koydukları farklı bakış açılarının ve temellerinin bir bütün olarak daha iyi anlaşılmasını sağlamaktır. Bu çalışma ile ayrıca, daha sonra yapılacak çalışmalarda kullanılabilecek teorik alt yapıya veya kavramsal çerçeveye katkı sağlanması da amaçlanmıştır.
ABSTRACT: Traditional finance has developed based on two fundamental assumptions, including the expected utility theory and rational choice or decision. However, this hypothesis has been criticized heavily by put forward that are not realistic enough. The basis of behavioral finance theory is based on the " prospect theory ". According to this theory individuals cannot act fully rational, they install more sense to loses than at the same amount of profit and they exhibit risk and loss aversion behaviour. Behavioral finance is intended individuals' understanding of the reasoning patterns that used in their financial decision-making as a more realistic by including the behavioral and emotional patterns of individuals to the decision making processes. This study has focused on traditional finance and behavioral finance fields and the basics of these two fields. And also these fields are discussed and compared with general principles. This study reflects the terms of a comprehensive view on the subject. The goal of the study is to provide a better understanding of the different viewpoints that put forward by traditional and behavioral finance disciplines as a whole. Also with this study it is aimed to contribute to the theoretical background and conceptual framework that will be used in next studies.

- by Ry Manalo
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- Development Economics, Development Studies, Politics, Law and Economics

Professional Education depends on occupation and business and it is the need of great importance for each nation to have solid professional training framework. It can be characterized as talented based instruction. Professional Education helps in financial development. The Indian instruction framework perceives the part of instruction and especially Vocational Education. National Council for Professional Training, a warning body, was set up by the Government of India assumes its vital part in execution of Vocational Education in India. Despite the fact that there are parcels numerous territories in which India is confronting issues in Professional Education Implementation. This article tosses light upon scope, issue zones and government part in Vocational Education Implementation.

- by Asli Demirguc-kunt
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- Financial Economics, Property Rights, Financial development, Capital Structure

This research work empirically investigates the impact of trade liberalization and financial development on economic growth in Nigeria using annual observation over the period of 1986-2013. Instead of using common proxies for the issues, principal components analysis is employed to develop better measures (indexes) for trade liberalization, financial development and the joint effects of both. Vector autoregressive (VAR) methodology and its derivatives, impulse response function and variance decomposition, were employed that enable us to scrutinize the relationship between trade liberalization, financial development and economic growth. The result using pairwise Granger causality test further signified that only trade liberalization has a positive and a significant effect on economic growth in Nigeria. However, financial development and economic liberalization showed a positive, but insignificant contribution to economic growth. The insignificant relationship could be as a result of the country’s over reliance on proceeds from crude oil and so many negative factors bedeviling the Nigerian economy, for example corruption. The private sector should have a greater control of the economy so as to enhance its contribution towards the economic growth of Nigeria.

- by Adebiyi Ayodeji
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- Economic Growth, Financial development, Trade Liberalization

This research paper talks about Value of Social Capital. This paper reveals corporate, entrepreneurs are boosting their
performances, touching heights by considering social capital as important aspect. Due to nice cooperation among society it results
to financial development. It’s not just human capital which should be considered but today it is important to consider social capital
as well to develop careers. Here we got to know about relation between social capital and Globalization. Information technology
has the potential to increase social capital. This paper was reviewed and explained with the help of Secondary data available
through various journals, magazines, previous research papers and other useful internet material. Paper presents and attempts to
study the concept of social capital, various factors impacting decisions of Human, Economy. Apart from considering importance of
Social Capital this paper pays attention to its critical aspect as well.

- by Navdeep kaur
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- Information Technology, Peace and Conflict Studies, Globalization, Conflict

The role of financial innovation on economic growth in developing countries has not been actively pursued. Stemming from the finance-growth nexus, literature suggests that financial innovation has a relationship to growth, which could be either positive or negative. Implicitly, financial innovation has a good and a dark side that affects growth. This study establishes the causal relationship between financial innovation and economic growth in Zimbabwe empirically. Using the Autoregressive Distributed Lag (ARDL) bounds tests and Granger causality tests on financial time series data of Zimbabwe for the period 1980-2013, the study finds that financial innovation has a relationship to economic growth that varies depending on the variable used to measure financial innovation. A long-run, growth-driven financial innovationis confirmed, with causality running from economic growth to financial innovation. Bi-directional causality also exists after conditionally netting-off financial development. Policies that enhance economic growth intertwined with financial innovation are essential, if developing countries, such as Zimbabwe, aim to maximize economic development.

- by Calvin Mudzingiri
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- Financial development, Financial Innovation

This paper estimates a six-equation model of financial development and economic growth for Malaysia to shed light on the mechanisms linking these two variables. The results indicate that financial development leads to higher output growth via promoting both private saving and private investment. The findings also provide some support for the hypothesis of endogenous financial development and growth models that finance leads to higher growth through improved efficiency of investment. There is evidence that repressionist financial policies, such as interest rate controls, high reserve requirements and directed credit programs,
have contributed positively to financial development. However, other direct government interventions in the economy, such as
resource allocation through the operation of a broad-based employee provident fund (EPF) scheme and various public investment programs, seem to have impacted negatively on economic development in Malaysia.

- by James B Ang
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- Economic Growth, Malaysia, Financial development

The current oil-induced fiscal crisis in Nigeria has, once again, brought the country into the headlines as suffering great economic hardship. As a result, economic diversification is currently at the center of the debate on how Nigeria can improve its economic performance and achieve higher incomes. This discussion, however, has most of the times lacked an explanation of how financial development and financial inclusion can help to drive economic diversification in Nigeria. The literature is scanty in this regard. The objective of this study, therefore, is to contribute to this empirical evidence to the understanding of the impact of financial development and financial inclusion on economic diversification in Nigeria. The data for the study is from CBN Statistical Bulletin and World Development Indicators, for the period 1981 to 2014. It is well-known in the literature that employing the standard OLS techniques on non-stationary data may lead to spurious results. This study, therefore, uses the fully modified least square (FMOLS) which is designed to provide optimal estimates of cointegrating regressions. The results show that financial development has a positive effect on economic diversification, though the effect is not statistically significant. Additionally, financial inclusion, in terms of financial access and financial usage, has positive and significant effects on economic diversification. In other words, financial inclusion has contributed significantly to the diversification of the Nigerian economy. As well, GDP per capita, capital formation, and human capital development have positive and significant effects on economic diversification. FDI has positive effects on economic diversification, though the effects are not significant. On the contrary, exchange rate and trade openness have negative and significant effects on economic diversification. Financial inclusion can, therefore, be seen as a potent accelerator of economic diversification, and can help realize the national objectives of building shared prosperity and abolishing extreme poverty in Nigeria.

- by Olaniyi Evans
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- Financial development, Financial Inclusion, Diversification

Infrastruktur merupakan salah satu aspek pendukung utama yang sangat dibutuhkan oleh suatu Negara untuk mewujudkan kesejahteraan bagi masyarakatnya. Indonesia sebagai Negara berkembang terus menerus melakukan peningkatan dari segi infrastrukturnya. Pembangunan infrastruktur saat ini tidak hanya terpaku pada pembangunan di Pulau Jawa saja akan tetapi pembangunan di luar Pulau Jawa lah yang menjadi prioritas untuk mewujudkan pembangunan Indonesia-sentris. Hal ini juga untuk menguatkan posisi Indonesia di mata dunia terutama semenjak AEC sudah berlaku karena infrastruktur merupakan urat nadi ekonomi dan pembangunan.
Inilah yang mendorong adanya permintaan agar pemerintah segera merealisasikan pembangunan Jalan Tol Trans Sumatera (JTTS). JTTS merupakan jalan tol sepanjang 2.818 km yang direncanakan akan menghubungkan kota-kota di Pulau Sumatera yaitu dari Lampung hingga Aceh.
Proyek Pembangunan JTTS ini merupakan bagian dari Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (MP3EI).
Sumber pembiayaan yang digunakan dalam pembangunan JTTS ini berasal dari sumber dana konvensional yaitu berupa Penyertaan Modal Negara (PMN) dan non konvensional berupa pembiayaan melalui obligasi sebagai bentuk bridging financing.

- by Nur Sa'dah
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- Economics, Development Economics, Financial development, PMN
- by Bismarck Javier Arevilca-Vasquez
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- Finance, Economic Growth, Financial development, Stock Markets

This paper presents a discussion of decentralized finance in Africa. It presents some statistics and data on decentralized finance in Africa. Thereafter, the potential benefits, challenges and regulatory issues associated with decentralized finance in Africa are presented. Recently, there has been an increase in the use of cryptocurrency, decentralized finance applications (dApps) and decentralized financial services (DeFi) in several countries. These innovations facilitate the delivery of financial services using smart contracts. Decentralized finance (DeFi) encompasses all financial services that are built on public blockchains, based on open protocols and removes intermediaries from the financial intermediation process. There is significant cryptocurrency activity in Africa while decentralized finance (DeFi) is relatively new and unpopular in the African continent. There is low interest in decentralized finance in Africa. The benefit of DeFi to African countries include increased liquidity for small and medium scale enterprises (SMEs), new opportunities to raise additional capital to fund capital-intensive activities, it will usher in an era of smart contracts that are negotiated bilaterally without needing an intermediary, it will encourage peer-to-peer trade between economic agents in several African countries, it will enhance the efficiency of the Pan-African Payment Settlement System (PAPSS), and encourage more trade between individuals and corporations under the African Continental Free Trade Agreement (AfCFTA), amongst others.

- by Dr Peterson K Ozili
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- Business, Finance, African Studies, Economics
- by esther lawal
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- Economics, Economic Growth, Financial development, Financial System
- by Langham Mwanza
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- Financial development, Financial Deepening