Suchergebnisse

The study focuses on the impact of financial market development (FMD) on economic growth in Sri Lanka. The study investigates positive association flows from finance to growth, called the "supply-leading hypothesis", in different directions such as positive, negative, bidirectional and neutral. FMD impact is considered in both depth and efficiency aspects. Natural logarithms (Ln) form of all gross domestic production in real terms, total domestic credit, percentage of loans and advances to total deposits, inflation index, market capitalisation of listed domestic companies and money supply as liquidity indicator are concerned, first being the dependent variable, next two as depth indicators and last three explanatories as efficiency indicating variables. Changes in both private sector production volume Index and government expenditure are also included into the model as independent variables to represent the non-financial market impact. Secondary monthly time series data published by the Central Bank of Sri Lanka from January 2008 to June 2019 of 138 observations are analysed using the E-views version 10. The ARDL model is applied. The study suggests a significant long-run impact of FMD on economic growth in Sri Lanka. Furthermore, inflation hinders the FMD. Up to the bearable limit, financial depth positively affects, while the higher degree of financial depth negatively influences economic growth in Sri Lanka. The impact of the non-financial market is comparatively insignificant on economic growth.

This article is devoted to the development of the financial market in Central Asia. The economic situation in the states of the region and their competitiveness are also considered. The study used the IMF, WEF, and WB databases, as well as statistics of the EAEU countries. The authors used logical conclusions, the selection of necessary information, and systems analysis when considering the business environment and state regulation measures in the countries of the region. It is noted that the banking sector of Kazakhstan is the most integrated one into the global financial system. Uncertainty in the development of banks in Kyrgyzstan, the isolation of the banking sector in Turkmenistan, and the dependence of credit institutions in Uzbekistan and Tajikistan on administrative intervention are presented. The rates of competitiveness of the financial markets of Central Asian countries are very low – even Kazakhstan, with a fairly developed market of securities, is in 114th place among the 144 countries of the world. Legislation regulating the operation of the stock markets of the Central Asian countries has not yet been formed, Kazakhstan and Kyrgyzstan do not meet international standards, and Tajikistan and Turkmenistan do not officially have stock exchanges. The example of Kazakhstan shows that the capitalization of the stock market is growing, and the stock market ecosystem has been built. The placement of shares of national companies on the London Stock Exchange allowed for the increase of capital, but small trading volumes, an insufficient number of financial instruments, and a limited number of investors hinder the development of the domestic stock market. It is proposed to involve local business structures, enterprises, and the population in investing in socially significant projects through the issuance of municipal bonds.

This paper examines the effects of political agreements on regional financial integration (RFI) on financial market development and access to and cost of finance in Sub-Saharan Africa. Our results suggest that RFI positively affects financial development - measured very broadly as the size of the financial sector, including the liabilities of the central banks - when combined with a sufficient level of institutional quality. If institutional quality is below a threshold level, RFI apparently has negative effects on financial development. However, we can find no significant effects of RFI on the size of the private financial sector or on the efficiency of the banking sector. Regarding the effects of RFI on access to and costs of finance of enterprises in SSA, our results are mixed. We can find no significant effect of RFI on access to finance for all firms in the aggregate, but the results indicate that RFI actually impedes small firms' access to finance. Furthermore, there is a significant positive influence of foreign bank involvement on the severity of the credit constraint for small enterprises, while we don't find such an influence for large enterprises. These results provide some support for the foreign bank barrier hypothesis in the context of RFI.

AbstractThis article examines the effects of political agreements on regional financial integration (RFI) on financial market development and access to and cost of finance inSub‐SaharanAfrica (SSA). Our results suggest thatRFIpositively affects financial development – measured very broadly as ratio of liquid liabilities to gross domestic product (GDP) – when combined with a sufficient level of institutional quality. If institutional quality is below a threshold level,RFIapparently has negative effects on financial development. However, we cannot find any significant effects of RFI on the ratio of private credit toGDPor on the efficiency of the banking sector. Regarding the effects ofRFIon access to and costs of finance of enterprises inSSA, our results are mixed. We can find no significant effect ofRFIon access to finance for all firms in the aggregate, but the results indicate thatRFIactually impedes small firms' access to finance. Furthermore, there is a significant positive influence of foreign bank involvement on the severity of the credit constraint for small enterprises, while we do not find such an influence for large enterprises. These results provide some support for the foreign bank barrier hypothesis in the context ofRFI.

The main purpose of this paper is to assess the impact of financial market development on Foreign Direct Investment (FDI) in Latin American countries. Financial market development and FDI are two important sources of efficient economic resource allocation in the region. We use banking sector and stock market indicators to capture financial market development. By giving greater consideration to the short-run and long-run effects of financial market development on FDI, this paper presents empirical results from a time series model of 14 Latin American countries. We find financial market development link is both short-run and long-run phenomena in majority of countries. Furthermore, our result of the causality test shows that link between FDI and banking sector development is uni-directional and the link between FDI and stock market development is bi-directional.

This article investigates the relationship between budget deficits and inflation with the view that the nature of this relationship depends on the characteristics of monetary and financial institutions. The main hypothesis is that budget deficits are especially inflationary when both the central bank is not independent and the financial market is not developed enough to contain inflationary expectations. The empirical analysis using a panel data that comprises 54 developed and less developed countries, with one to two decades of observations for each, supports this hypothesis. The findings are also robust to subsets of the sample. (JEL E58, H62)