Financial Intermediation and Economic Growth: From Idiosyncratic Shocks to Aggregate Fluctuations

2020 ◽  
Author(s):  
Shohini Kundu ◽  
Nishant Vats
Keyword(s):  
Economic Growth ◽  
Financial Intermediation ◽  
Aggregate Fluctuations ◽  
Idiosyncratic Shocks

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

scholarly journals News and Financial Intermediation in Aggregate Fluctuations

2017 ◽  
Vol 99 (3) ◽  
pp. 514-530 ◽  
Author(s):  
Christoph Görtz ◽  
John D. Tsoukalas
Keyword(s):  
Financial Intermediation ◽  
Aggregate Fluctuations

Financial depth and economic growth - the case of Hungary, the Czech Republic and Poland

2004 ◽  
Vol 54 (3) ◽  
pp. 297-321
Author(s):  
Katalin Mérő
Keyword(s):  
Economic Growth ◽  
Czech Republic ◽  
Financial Intermediation ◽  
Bank Loans ◽  
Eastern European ◽  
Financial Deepening ◽  
The Czech Republic ◽  
Catching Up ◽  
European Economies ◽  
The Relationship

The article focuses on the relationship between economic growth and financial intermediation, with special focus on the process of catching up in three Central and Eastern European economies: Hungary, the Czech Republic and Poland (CEC-3). The depth of financial intermediation and economic growth exhibit a close, direct relationship with each other. According to recent studies the relationship is causal and the level of financial development is a good indicator of future economic growth. Examining the relationship between the two factors is especially important for these Central and Eastern European economies, where the level of financial intermediation is very low compared to that of developed countries. The lack of financial deepening is even more pronounced taking into consideration that there is a significant catching-up process in every other areas of the economy. The initial proposition here is that in order to these countries catching up, their economic growth must necessarily be accompanied by a marked financial deepening, without which long-term economic growth is impossible. It is absolutely necessary that in the future the role of bank loans in these economies increases significantly and that a period characterised by a lending boom follows. The lending boom should occur in CEC-3 is not an unequivocal sign of imprudent lending or a supply-side expansion of bank loans - on the contrary, it should be viewed as complementary to the economic development at the given economic stage.

scholarly journals Financial Intermediation in the Early Roman Empire

2004 ◽  
Vol 64 (3) ◽  
pp. 705-733 ◽  
Author(s):  
PETER TEMIN
Keyword(s):  
Economic Growth ◽  
Eighteenth Century ◽  
Roman Empire ◽  
Financial Markets ◽  
Western Europe ◽  
Financial Intermediation ◽  
Roman Economy ◽  
History Of ◽  
Financial Arrangements

I evaluate the effectiveness of financial markets in the early Roman Empire in this article. I review the theory of financial intermediation to describe a hierarchy of financial sources and survey briefly the history of financial intermediation in eighteenth-century Western Europe to provide a standard against which to evaluate the Roman evidence. I then describe the nature of financial arrangements in the early Roman Empire in terms of this hierarchy. This exercise reveals the extent to which the Roman economy resembled more recent societies and sheds light on the prospects for economic growth in the Roman Empire.

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