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To clarify the causal links between financial activity and economic growth, three theoretical models are analyzed and a structural equation path models is estimated. In the modeling part, poverty traps result from large fixed costs or high proportions of real investment to run a financial...
Persistent link: https://www.econbiz.de/10010305424
Formal remittance flows to Pakistan have shown noticeable growth over the past decade. Using bilateral remittance data … suitable to control for unobserved heterogeneity as well as simultaneous bias existing between remittances and migrant's stock …. The main novelty with respect to the existing literature is the use of transaction costs of remittances as a superior …
Persistent link: https://www.econbiz.de/10010368305
analyze the impact of terrorism in Pakistan on the inflows of foreign direct investment (FDI), portfolio investments, and … migrant remittances. We find that FDI decreases substantially as a result of terrorist activity, whereas portfolio investments … show little change. In contrast, migrant remittances show a significant increase. These differences are also evident in …
Persistent link: https://www.econbiz.de/10012142455
Despite the increasing importance of remittances in total international capital flows, the relationship between … remittances and growth has not been adequately studied. This paper studies one of the links between remittances and growth, in … particular how local financial sector development influences a country's capacity to take advantage of remittances Using a newly …
Persistent link: https://www.econbiz.de/10010267976
This study is an attempt towards an integration of financial development and its effect on the real sector via the transmission mechanism with special reference to developing and emerging market economies. It finds two cointegrating relations between the financial development, output growth and...
Persistent link: https://www.econbiz.de/10010284531
I investigated whether migration is interrelated with trade, aid and remittances so that any policies that consider … trade, aid and remittances also affect the decision to migrate. We developed and estimated an empirical model of Turkish … migration to Germany and tested the model for the 1969-2004, using the cointegration technique. A single cointegrating vector is …
Persistent link: https://www.econbiz.de/10010285808
This paper looks at the issue of reforming financial regulatory structures from the New Institutional Economics perspective. In particular, it examines how the broader institutional environment prevailing in developing countries like the Philippines may affect the institutional arrangements for...
Persistent link: https://www.econbiz.de/10011429863
An endogenous growth model with a financial sector is formulated, and empirical analyses are conducted. The model exhibits structural shifts and breaks caused by institutional change, suggesting that a linear approach is inadequate. To address this point empirically, we fit data for 90 countries...
Persistent link: https://www.econbiz.de/10010305439
During the last years the relationship between financial development and economic growth has received widespread attention in the literature on growth and development. This paper summarises in its first part the results of this research, stressing the growth-enhancing effects of an increased...
Persistent link: https://www.econbiz.de/10010330134
This paper reviews the main features of the banking and financial sector in ten new EU members, and then examines the relationship between financial development and economic growth in these countries by estimating a dynamic panel model over the period 1994-2007. The evidence suggests that the...
Persistent link: https://www.econbiz.de/10010271094