Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1985570
The impact of financial development on economic indicators: a dynamic panel data analysis
Jun Wen
Hamid Mahmood
Samia Khalid
Muhammad Zakaria
Sažetak
The study investigates the effect of financial development on
major economic indicators, i.e., economic growth, inflation, and
employment by applying System GMM estimation technique for a
panel of 120 countries for the period 1997 to 2017. Four distinct
proxies of financial development are used, i.e., private sector
credit, liquid liabilities, money and quasi money, and bank credit.
The results contradict the traditional supply-lending hypothesis
and reveal negative impact of financial development on economic
growth. Moreover, financial development is found to be positively
associated with inflation and employment growth. It is suggested
that there is need to reform and strengthen the supervision of
financial intermediaries to ensure sound prudential lending practices. Furthermore, more credit needs to be allocated to highly productive firms.
Ključne riječi
Financial development; growth; inflation; employment; GMM
Hrčak ID:
302491
URI
Datum izdavanja:
31.3.2023.
Posjeta: 1.227 *