Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Non-linear Growth Impacts of Financial Development in Euro Area
University West, Department of Economics and IT, Division of Law, Politics and Economics.ORCID iD: 0000-0002-5176-9253
2012 (English)In: International Journal of Economics and Finance, ISSN 1916-971X, Vol. 4, no 12, 23-38 p.Article in journal (Refereed) Published
Abstract [en]

Using GMM model and data from 11 Euro Area countries and 5 non-Euro countries over the period 1989 to 2011, we explore the nonlinear effects of financial development on the performance of Euro Area economy that is: its growth, capital accumulation, investment and productivity. Four measures of financial developments are examined, namely, liquidity, size, volatility and bank’s loans to private enterprises. Special consideration is devoted to modeling threshold effects of public debt that has increased substantially in recent years in several Euro countries. We found that the effect of stock market size is always positive whether we consider the level of real per capita income or its growth. However, the effect of banking sector, volatility, liquidity and public debt are generally negative. In addition, we find support for the channels of investment, saving, total factor productivity, and capital intensity. For all the four channels, the results indicate a significant negative link between banking development and volatility of stock returns. The impact of debt on growth seems to be negative with the turning point of public debt likely to be between 45-65%.

Place, publisher, year, edition, pages
Toronto: Canadian Center of Science and Education , 2012. Vol. 4, no 12, 23-38 p.
Keyword [en]
GMM, nonlinear, financial development, volatility, threshold
National Category
Economics
Research subject
SOCIAL SCIENCE, Economics
Identifiers
URN: urn:nbn:se:hv:diva-4760DOI: 10.5539/ijef.v4n12p23OAI: oai:DiVA.org:hv-4760DiVA: diva2:562351
Available from: 2012-12-20 Created: 2012-10-24 Last updated: 2016-06-01Bibliographically approved

Open Access in DiVA

Non-linear Growth Impacts.pdf(850 kB)353 downloads
File information
File name FULLTEXT01.pdfFile size 850 kBChecksum SHA-512
1ae0640ef7a3a05f20535e99e6df1d0313d33fe9668168f86cd9f78342efbc10c237116fe64fd0d9c94977b2f02c0e153286925d884143a5d7036436e18cb5ee
Type fulltextMimetype application/pdf

Other links

Publisher's full textTidskriften

Search in DiVA

By author/editor
Asal, Maher
By organisation
Division of Law, Politics and Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 353 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 230 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf