Theoretical and Applied Economics
No. 3 / 2019 (620), Autumn
Non-linear finance-growth nexus for African countries: A panel smooth transition regression approach
Istanbul Medeniyet University, Turkey
Huseyin KAYA
Istanbul Medeniyet University, Turkey
Abstract. The economic growth effects of financial development have been the focus of much research in empirical growth literature. Recent literature has focus on the nonlinear effects of financial development on economic growth using advances in econometric techniques. Using a novel data set, we examine the conditioning role of the overall level of financial development, financial institutions development and financial markets development in finance-growth nexus for African countries using panel smooth transition regression approach (PSTR). Our results show that a sufficient level of the overall financial development is needed for finance to be growth enhancing in African countries, while a robust non-linear finance-growth nexus cannot be established when we conditioned finance-growth nexus on financial institutions development or financial markets development.
Contents
The main factors of economic growth in the European Union
Currency risk management model
Assessing the performance of Pillar II in Romania – time weighted versus money weighted rate of return
Does democracy increase total tax revenues? The case of selected OECD countries
An evaluation of the turnover tax system in South Africa
Sensitivity of bankruptcy prediction models to the change in econometric methods
Risk management associated with the interbank relationships
Challenging the status quo: Steel producer case study on the enterprise value for M&A
Innovation as imperative for increasing productivity and economic growth: The case of the selected EU member countries and non-EU member countries
International Financial Markets face to face with Artificial Intelligence and Digital Era
Determinants of domestic saving rate in Turkey: A new generation econometric analysis
A behavioral model of failure in business
The effect of oil prices on foreign trade deficit in the economics of Bulgaria
Relationship between mortality and financial crisis. The case of Greece
Profit management in the case of financial distress and global volatile market behaviour: Evidence from Borsa Istanbul Stock Exchange
Insurance consumption in the Maghreb countries (Algeria, Morocco and Tunisia): Financial and institutional determinants
Non-linear finance-growth nexus for African countries: A panel smooth transition regression approach