Financial development, real sector and economic growth: Evidence from emerging market economies

2020 ◽  
Author(s):  
Chandrashekar Raghutla ◽  
Krishna Reddy Chittedi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Real Sector ◽  
Market Economies

Impact of financial development and economic growth on energy consumption: A panel vector autoregressive analysis for the comparison of G7 and top 10 emerging market economies

2021 ◽  
pp. 0958305X2110041
Author(s):  
Alper Aslan ◽  
Onur Gozbasi ◽  
Buket Altinoz ◽  
Mehmet Altuntas
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Banking Sector ◽  
Emerging Market ◽  
Bond Market ◽  
Market Development ◽  
Emerging Market Economies ◽  
Market Economies ◽  
Long Run

The aim of this paper is to investigate the relationship between energy consumption, financial development, and economic growth in the case of the G7 economies and emerging market economies. To this end, the role of the banking sector, as well as data from both the stock and the bond market, are explicitly used to proxy financial development. It is used the panel VAR method for the data period from 1990 to 2015. The results illustrate that there is a positive link between the stock market development and energy consumption in both G7 and top 10 emerging market economies in the long run. Also, while banking sector development in G7 countries decreases energy consumption in the long run, increases it in emerging market economies. Another aspect of the results is the determination of the energy-enhancing effect of the bond market development in the G7 countries. Moreover, while the results once again emphasize the existence of the link between financial development and energy consumption, they differ in terms of developed and developing countries.

The impacts of income inequality on the gross domestic product under direct taxation: evidence from emerging market economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmet Eren Yıldırım ◽  
Mete Dibo
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
Emerging Market ◽  
Domestic Product ◽  
Emerging Market Economies ◽  
Content Type ◽  
Market Economies ◽  
Direct Taxation

PurposeThis study analyzes the impacts of income inequality after direct taxation on the gross domestic product as a fiscal policy tool in the development process.Design/methodology/approachThe model of the study is based on Munielo-Gallo and Roca-Sagales (2013), which examined the fiscal policy, income inequality and economic growth simultaneously. The study uses two models to analyze the relationship between income inequality and gross domestic production under direct taxation by employing autoregressive distributed lag (ARDL) model for selected emerging market economies.FindingEmpirical results reveal a negative long-run relationship between variables in some countries in line with the literature, despite a positive relationship in others. Moreover, the results exhibit the negative impact of income inequality after direct taxation on the gross domestic product decreases.Originality/valueResults of the study highlight the importance of direct taxation on income inequality concerning the reflects on economic growth. It suggests that when the income distribution is fairer, it may positively affect the gross domestic product. The study provides a new perspective to the related literature by investigating the role of income inequality under direct taxation for gross domestic product.

scholarly journals Economic Freedoms and Economic Growth: An Investigation on Emerging Market Economies

2015 ◽  
Author(s):  
Bedriye Tunçsiper ◽  
Ömer Faruk Biçen
Keyword(s):  
Economic Growth ◽  
Economic Freedom ◽  
Emerging Market ◽  
Property Right ◽  
Emerging Market Economies ◽  
Dependency Ratio ◽  
Market Economies ◽  
Economic Freedom Index ◽  
The Relationship ◽  
Business Freedom

The common view in the economics theory relating to the fact that economic freedom will raise labor productivity and it will provide effective use of scarce resources becomes a current issue with the increase in the number of papers investigating the effect of economic freedom on economic growth. One of the main reasons of the increasing number of those papers is that economic freedom can be measured quantitatively (numerically) through the indexes calculated by various institutions. In this paper, the relationship between economic freedoms and economic growth for some emerging market economies is investigated. In estimating of the relationship between economic freedoms and economic growth, overall economic freedom index, property right index, business freedom index, trade freedom index and investment freedom index, which was created by the Heritage Foundation was used. Investment/GDP ratio and population dependency ratio are also control variables in the model. In the paper, in which panel fixed effect model was used, property right index, investment freedom index and population dependency ratio affect economic growth negatively, but business freedom index, trade freedom index and investment/GDP ratio affect economic growth positively. It isn’t found that there is a significantly relationship between overall economic freedom index and economic growth.

scholarly journals TAX POLICY IN OECD COUNTIES

2018 ◽  
pp. 127-138
Author(s):  
Mykola PASICHNYI
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Tax Policy ◽  
Emerging Market ◽  
Oecd Countries ◽  
Emerging Market Economies ◽  
Tax Structure ◽  
Market Economies ◽  
Favorable Conditions

Introduction. Globalization intensifies the necessity for intergovernmental cooperation aiming to implement the measures on the tax and customs regulation. Considering both the economic cyclicality and historical retrospective, it is expedient to study the advanced and emerging market economies’ experience in the field of developing and implementing a set of fiscal policy measures during the economic expansion, recession, stagnation, and post-crisis recovery periods. The purposeis to systemize the experience of the government tax policy preparation and implementation in the OECD countries in the long-term retrospective, and to assess the tax structure and the level of taxation impact on economic growth. Results. Based on methods of economic regression to evaluate the fiscal policy in the OECD countries over 1981–2016 period, it was determined that increase in the tax burden did not provoke any significant destructive effect on the economy. At the same time, in the context of the tax structure, the taxes on capital had a negative impact on the real GDP growth rates, the taxes on labor had a lower degree of influence, and the effect of the taxes on consumption was almost neutral. The main measures of the tax regulation aimed to create the most favorable conditions for a long-term economic growth were investigated. The tax revenues structure’s complex analysis was carried out; the main tendencies of taxation were generalized. Conclusion. Tax policy is as an adaptive mechanism allowing to regulate the country’s economic development. The OECD countries consistently implement the systematic measures to reduce the income tax rate. This practice is caused by the need to create the most favorable conditions for the entrepreneurship development. Regarding the universal consumption taxes, a gradual rise in their rates was recorded. That fact is reflected by an increase in these taxes’ fiscal importance (taking into account the neutrality of their impact on the economic agents’ business activity). The transformation in the import operations’ model of taxation as well as the implementation and active intensification of free trade policies led to a reduction in the specific weight of customs duties. In modern conditions, the tax legislation’s unification as well as the strengthening of the supranational tax regulation’s role outline an important trend in the development of taxation systems both in advanced and emerging market economies.

scholarly journals The Effects of Inward and Outward Foreign Direct Investments on Economic Growth: Evidence from the G-7 and Selected Emerging Market Economies (1994-2015)

2017 ◽  
Vol 9 (1) ◽  
pp. 26
Author(s):  
Ömer Yalçınkaya ◽  
Halil İbrahim Aydın
Keyword(s):  
Economic Growth ◽  
Capital Mobility ◽  
Emerging Market ◽  
Empirical Literature ◽  
Emerging Market Economies ◽  
Foreign Direct Investments ◽  
Capital Investments ◽  
Market Economies ◽  
New Generation

In this study, the long termed effects of foreign direct (capital) investments inflows and outflows on the economic growth of the economies of developed G-7 countries where the capital mobility is intense and selected emerging market economies (Brazil, China, India, Mexico, Russia, South Africa and Turkey (EME-7)) are empirically analyzed for the period of 1994-2015 within the scope of the new generation panel data methodology. From this aspect, it is also aimed to economically analyze whether the foreign direct investments inflows and outflows in countries of G-7 and EME-7 have an effect on the economic growth as is seen in the theoretical framework by being considered the capital exporter/importer positions of these countries. Determined in consequence of the study that foreign direct investments inflows/outflows in the countries of G-7 have a positive and statistically significant effect on economic growth in the long term. Also determined that the foreign direct investments inflows have a positive and statistically significant effect on economic growth in countries of EME-7; while the foreign direct investments outflows have not the same effect on the economic growth. These results which are consonant with the theoretical and empirical literature show that just both foreign direct investments inflows and outflows have a significant role in economic growth on G-7 countries; just foreign direct investments inflows have an important role in economic growth on EME-7 countries at the same time.

Economic Growth and Environmental Impacts of Foreign Direct Investment in Emerging Market Economies

2019 ◽  
pp. 107-122
Author(s):  
Adem Gök
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Panel Var ◽  
Market Economies ◽  
Pollution Haven

The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.

scholarly journals Financial development and poverty reduction in emerging market economies

2017 ◽  
Vol 64 (5) ◽  
pp. 593-606 ◽  
Author(s):  
Yılmaz Bayar
Keyword(s):  
Financial Development ◽  
Poverty Reduction ◽  
Structural Breaks ◽  
Banking Sector ◽  
Positive Impact ◽  
Emerging Market ◽  
Unit Root Test ◽  
Emerging Market Economies ◽  
Cross Sectional ◽  
Market Economies

Poverty reduction is one of the key challenges in the globalized world. This study investigates the relationship between financial development and poverty reduction in emerging market economies during the period 1993- 2012. The Carri?n-i-Silvestre, del Barrio-Castro, and L?pez-Bazo (2005) panel unit root test and the Basher and Westerlund (2009) cointegration test was applied considering the cross-sectional dependence and multiple structural breaks in the study period. The findings indicated that financial development, including banking sector development and stock market development, had a significant positive impact on poverty reduction in emerging market economies.

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