scholarly journals Finance, growth and threshold effects

2012 ◽  
Vol 59 (5) ◽  
pp. 553-581 ◽  
Author(s):  
Jean-Pierre Allegret ◽  
Sana Azzabi
Keyword(s):  
Steady State ◽  
Financial Development ◽  
Developing Economies ◽  
Dynamic Panel Data ◽  
Threshold Effects ◽  
Dynamic Panel ◽  
State Growth ◽  
Emerging And Developing Countries ◽  
Development Threshold

In this paper, we test the existence of financial development threshold effects, firstly, between financial development and long-term growth, and, secondly, between financial development and long-term GDP. We also ask whether such effects may explain the link financial development - convergence/ divergence to the advanced countries? growth. Our work builds on that of Aghion, Howitt, and Mayer-Foulkes (2004). It differs from previous work about assumptions and methodology. Estimates are performed with GMM dynamic panel data techniques for 112 emerging and developing countries from 1975 to 2007. The results show a positive but vanishing effect of financial development on steady-state GDP, from a critical (an average) level of financial development. They do not validate, however, the assumption that the marginal impact of financial development on the steady-state growth rate is more favorable than the degree of financial development is low. We support only partially the role that the financial development could play in the acceleration of the convergence of emerging and developing economies towards the world frontier growth.

scholarly journals Disentangling strictly self-serving mutations from win-win mutations in a mutualistic microbial community

eLife ◽  
2019 ◽  
Vol 8 ◽  
Author(s):  
Samuel Frederick Mock Hart ◽  
Jose Mario Bello Pineda ◽  
Chi-Chun Chen ◽  
Robin Green ◽  
Wenying Shou
Keyword(s):  
Growth Rate ◽  
Steady State ◽  
Microbial Community ◽  
Release Rate ◽  
Supply Rate ◽  
Chromosome Duplication ◽  
Yeast Strains ◽  
Engineered Yeast ◽  
State Growth

Mutualisms can be promoted by pleiotropic win-win mutations which directly benefit self (self-serving) and partner (partner-serving). Intuitively, partner-serving phenotype could be quantified as an individual’s benefit supply rate to partners. Here, we demonstrate the inadequacy of this thinking, and propose an alternative. Specifically, we evolved well-mixed mutualistic communities where two engineered yeast strains exchanged essential metabolites lysine and hypoxanthine. Among cells that consumed lysine and released hypoxanthine, a chromosome duplication mutation seemed win-win: it improved cell’s affinity for lysine (self-serving), and increased hypoxanthine release rate per cell (partner-serving). However, increased release rate was due to increased cell size accompanied by increased lysine utilization per birth. Consequently, total hypoxanthine release rate per lysine utilization (defined as ‘exchange ratio’) remained unchanged. Indeed, this mutation did not increase the steady state growth rate of partner, and is thus solely self-serving during long-term growth. By extension, reduced benefit production rate by an individual may not imply cheating.

scholarly journals Investigating the Banking Sector Development Transmission Mechanism of Financial Development to Growth: Evidence from Sub-Saharan Africa (SSA)

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 120-131
Author(s):  
Tochukwu Timothy Okoli ◽  
Ajibola Rhoda Oluwafisayomi
Keyword(s):  
Steady State ◽  
Financial Development ◽  
Banking Sector ◽  
Dynamic Models ◽  
Sub Saharan Africa ◽  
Transmission Channel ◽  
Steady State Growth ◽  
Sub Saharan ◽  
State Growth ◽  
Ssa Countries

The search for financial development’s transmission channel to growth has always been updated in the literature. While there has not been a consensus on this matter, empirical findings on finance-growth nexus have been ambiguous. Relying on this, we investigate its bank development transmission channel to growth in a panel of twenty-eight Sub-Saharan Africa (SSA) countries from 2000-2016. Having adopted the augmented Solow (1956) and Mankiw et al. (1992) growth model, the fixed effect and dynamic system GMM estimation techniques reveals a negative non-significant and positive significant direct impact of finance on growth in the static and dynamic models respectively, thereby suggesting institutional (dynamic) factors that can spur finance. Secondly, the non-linear effects of bank development had a direct positive significant impact on growth and its marginal-effects before and after the financial crisis of 2007/08 were relatively stable. This implies that banks in SSA were relatively stable in financial intermediation; therefore SSA countries need to reinforce and improve its banking policy through FinTechs adoption. Finally, the interaction between bank development and financial development significantly increase steady-state growth. This implies that SSA economies can promote steady-state growth from financial development only when a threshold of bank development is reached.

scholarly journals Dynamic Panel Data Analysis of Capital Structure Determinants: Evidence from Iraqi Banks

2021 ◽  
Vol 2 (1) ◽  
pp. 102-114
Author(s):  
Hamid Mohsin Jadah ◽  
Mohammed Faez Hasan ◽  
Noor Hashim Mohammed Al-Husainy
Keyword(s):  
Capital Structure ◽  
Dominant Role ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Bank Profitability ◽  
Leading Role ◽  
Dynamic Panel Data Analysis ◽  
Structure Choice

This study investigates if the choice of capital structure of Iraqi banks could be interpreting through factors which have been studied by prior studies, which represented by determinants of capital structure choice (i.e., bank size, bank profitability, bank growth, tangibility, bank age). Using dynamic panel GMM for the period 2005 to 2019, this study maintains the explore on the determinants of capital structure of Iraq banks "developing country" that has circumstances likely to be quite different from those in developed and other major developing countries, particularly in terms of it deteriorating economic environment. The findings indicate that the bank size, bank profitability, bank age have a dominant role in explaining the variation in the long-term debt ratios of Iraqi banks. Meanwhile, only bank size, bank profitability, bank growth, bank age has a leading role in interpreting the variation of short-term debt ratios in the Iraqi banks. The current study has initiated some basis to discover the capital structure determinants of Iraqi banks upon which a more detailed evaluation could be based. Moreover, the experimental results can help Iraqi banks directors to choose the optimum structure of capital.

scholarly journals Dynamic Panel Data Analysis of Capital Structure Determinants: Evidence from Iraqi Banks

2020 ◽  
Vol 2 (1-2) ◽  
pp. 102-114
Author(s):  
Hamid Mohsin Jadah ◽  
Mohammed Faez Hasan ◽  
Noor Hashim Mohammed Al-Husainy
Keyword(s):  
Capital Structure ◽  
Dominant Role ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Bank Profitability ◽  
Leading Role ◽  
Dynamic Panel Data Analysis ◽  
Structure Choice

This study investigates if the choice of capital structure of Iraqi banks could be interpreting through factors which have been studied by prior studies, which represented by determinants of capital structure choice (i.e., bank size, bank profitability, bank growth, tangibility, bank age). Using dynamic panel GMM for the period 2005 to 2019, this study maintains the explore on the determinants of capital structure of Iraq banks "developing country" that has circumstances likely to be quite different from those in developed and other major developing countries, particularly in terms of it deteriorating economic environment. The findings indicate that the bank size, bank profitability, bank age have a dominant role in explaining the variation in the long-term debt ratios of Iraqi banks. Meanwhile, only bank size, bank profitability, bank growth, bank age has a leading role in interpreting the variation of short-term debt ratios in the Iraqi banks. The current study has initiated some basis to discover the capital structure determinants of Iraqi banks upon which a more detailed evaluation could be based. Moreover, the experimental results can help Iraqi banks directors to choose the optimum structure of capital.

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