Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014
This paper focuses on the impacts of financial development on economic growth with the cases of 122 low and middle-income countries from 1995 to 2014. Indicators for financial development include the ratio of liquid liabilities to GDP and the ratio of domestic credit to private sector by banks to GD...
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| Định dạng: | Master's Theses |
| Ngôn ngữ: | English |
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University of Economics Ho Chi Minh City; VNP (Vietnam – The Netherlands Programme for M.A. in Development Economics)
2018
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| Truy cập trực tuyến: | http://vnp.edu.vn/vi/nghien-cuu/luan-van-tot-nghiep/tom-tat-luan-van/884-impact-of-financial-depth-and-domestic-credit-on-economic-growth-the-case-of-low-and-middle-income-countries-from-1995-2014.html http://digital.lib.ueh.edu.vn/handle/UEH/58212 |
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oai:localhost:UEH-582122024-04-22T07:32:40Z Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 Le Thi Hoang Anh Dr. Pham Thi Bich Ngoc Financial depth Domestic credit Economic growth Low and middle-income countries This paper focuses on the impacts of financial development on economic growth with the cases of 122 low and middle-income countries from 1995 to 2014. Indicators for financial development include the ratio of liquid liabilities to GDP and the ratio of domestic credit to private sector by banks to GDP. Control variables include the inflation rate, the ratio of government final consumption expenditures to GDP, the ratio of exports and imports to GDP, and the total enrollment in secondary education. Research results are drawn from estimation methods of Pooled OLS, FEM (Fixed Effects Model), REM (Random Effects Model) and GMM (Generalized Method of Moments). Accordingly, financial development is concluded to have negative effects on economic growth in countries with low and middle incomes during 1995-2014. Nevertheless, the estimation results have some differences due to the differences in the estimation methods. In particular, the ratio of domestic credit to private sector by banks to GDP has negative impacts on economic growth rate, which is concluded by both FEM and GMM regression results. However, the impacts of the ratio of liquid liabilities to GDP on economic growth rate are differently described by the two estimation methods. According to the FEM regression results, the ratio of liquid liabilities is statistically significant and has negative influences on economic growth rate. However, according to the GMM regression results, the ratio of liquid liabilities to GDP is statistically insignificant and has no effects on the economic growth rate. Although the estimation results by FEM and GMM estimation methods have some variations, the final conclusions are considered to be identical: Financial development is proposed to have negative impacts on economic growth of countries with low and middle incomes. The explanations for the negative impacts can be drawn from the fact that capital investments tend to have low productivity and weak efficiency in countries with low and middle incomes. 2018-11-30T07:10:42Z 2018-11-30T07:10:42Z 2016 Master's Theses http://vnp.edu.vn/vi/nghien-cuu/luan-van-tot-nghiep/tom-tat-luan-van/884-impact-of-financial-depth-and-domestic-credit-on-economic-growth-the-case-of-low-and-middle-income-countries-from-1995-2014.html http://digital.lib.ueh.edu.vn/handle/UEH/58212 English reserved 75 p. University of Economics Ho Chi Minh City; VNP (Vietnam – The Netherlands Programme for M.A. in Development Economics) |
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Đại học Kinh tế Thành phố Hồ Chí Minh |
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English |
| topic |
Financial depth Domestic credit Economic growth Low and middle-income countries |
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Financial depth Domestic credit Economic growth Low and middle-income countries Le Thi Hoang Anh Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| description |
This paper focuses on the impacts of financial development on economic growth with the cases of 122 low and middle-income countries from 1995 to 2014. Indicators for financial development include the ratio of liquid liabilities to GDP and the ratio of domestic credit to private sector by banks to GDP. Control variables include the inflation rate, the ratio of government final consumption expenditures to GDP, the ratio of exports and imports to GDP, and the total enrollment in secondary education. Research results are drawn from estimation methods of Pooled OLS, FEM (Fixed Effects Model), REM (Random Effects Model) and GMM (Generalized Method of Moments). Accordingly, financial development is concluded to have negative effects on economic growth in countries with low and middle incomes during 1995-2014. Nevertheless, the estimation results have some differences due to the differences in the estimation methods. In particular, the ratio of domestic credit to private sector by banks to GDP has negative impacts on economic growth rate, which is concluded by both FEM and GMM regression results. However, the impacts of the ratio of liquid liabilities to GDP on economic growth rate are differently described by the two estimation methods. According to the FEM regression results, the ratio of liquid liabilities is statistically significant and has negative influences on economic growth rate. However, according to the GMM regression results, the ratio of liquid liabilities to GDP is statistically insignificant and has no effects on the economic growth rate. Although the estimation results by FEM and GMM estimation methods have some variations, the final conclusions are considered to be identical: Financial development is proposed to have negative impacts on economic growth of countries with low and middle incomes. The explanations for the negative impacts can be drawn from the fact that capital investments tend to have low productivity and weak efficiency in countries with low and middle incomes. |
| author2 |
Dr. Pham Thi Bich Ngoc |
| author_facet |
Dr. Pham Thi Bich Ngoc Le Thi Hoang Anh |
| format |
Master's Theses |
| author |
Le Thi Hoang Anh |
| author_sort |
Le Thi Hoang Anh |
| title |
Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| title_short |
Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| title_full |
Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| title_fullStr |
Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| title_full_unstemmed |
Impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| title_sort |
impact of financial depth and domestic credit on economic growth: the case of low and middle-income countries from 1995 - 2014 |
| publisher |
University of Economics Ho Chi Minh City; VNP (Vietnam – The Netherlands Programme for M.A. in Development Economics) |
| publishDate |
2018 |
| url |
http://vnp.edu.vn/vi/nghien-cuu/luan-van-tot-nghiep/tom-tat-luan-van/884-impact-of-financial-depth-and-domestic-credit-on-economic-growth-the-case-of-low-and-middle-income-countries-from-1995-2014.html http://digital.lib.ueh.edu.vn/handle/UEH/58212 |
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AT lethihoanganh impactoffinancialdepthanddomesticcreditoneconomicgrowththecaseoflowandmiddleincomecountriesfrom19952014 |
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