Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
-
DOIhttp://dx.doi.org/10.21511/afc.01(1).2017.06
-
Article InfoVolume 1 2017, Issue #1, pp. 48-58
- Cited by
- 7842 Views
-
1372 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
- Keywords
-
JEL Classification (Paper profile tab)G32
-
References12
-
Tables16
-
Figures1
-
- Fig. 1. A Scheme of formalization of the impact of imbalances in the movement of financial resources on economic growth
-
- Table 1. The views of foreign researchers on the relationship between financialization and economic growth
- Table 2. Results of using the method of principal components to determine the indicator of financialization
- Table 3. Afactorloadingmatrix of principal components
- Table 4. The results of calculation of the index off inancialization for the countries of Central and Eastern Europe in the period 1991-2014
- Table 5. Characteristics of the dependent, independent and control variables to formalize the impact of imbalances in the movement of financial resources caused by financialization on economic growth
- Table 6. The results of the VAR-test for identification of the optimal structure of time lags for the variables of the autoregressive model
- Table 7. The results of the PMGapproachtodeterminingshort-termandlong-term coefficients of autoregressive model (for the total sample of the surveyed countries)
- Table 8. The results of PMG approach to the definition of short-term coefficients of autoregressive model (for Ukraine)
- Table 9. Results of MG approach to determining short-term and long-term coefficients of autoregressive model (for the entire sample of surveyed countries)
- Table 10. The results of MG approach to the definition of short-term and long-term coefficients of autoregressive model (for Ukraine)
- Table 11. The results of DFE approach to the definition of short-term and long-term coefficients of autoregressive model (for the entire sample of surveyed countries)
- Table 12. The results of the Hausman test to compare the effectiveness of PMG and MG approaches
- Table 13. The results of the Hausman test to compare the effectiveness of PMG and DFE approaches
- Table 14. The results of PMG approach to determining short-termand long-term coefficients of dependency between imbalances in the movement of financial resources (according to DC indicator) and economic growth for all surveyed countries
- Table 15. The results of PMG approach to determining short-term and long-term coefficientsof dependency between imbalances in the movement of financial resources (BM indicator)and economic growth for the sample of surveyed countries
- Table 16. The results of PMG approach to determining short-term and long-term coefficientsof dependency between imbalances in the movement of financial resources (FSAss indicator)and economic growth for the sample of surveyed countries
-
- Arcand, J.L., Berkes, E. and Panizza, U. (2012). Too Much Finance, International Monetary Fund. Working Paper, 12(161), p. 49.
- Assa, J. (2012). Financialization and its consequences, The OECD Experience. Finance Research, 1 (1), pp. 35-39.
- Batt, R. (2012). The Impact of Financialization on Management and Employment Outcomes, 20th Annual John Lovett Memorial Lecture. Ireland, University of Limerick.
- Beck, T., Levine, R. (2000). New firm formation and industry growth : does having a market- or bank-based system matter? The World Bank Policy Research Working Paper Series.
- Caporale, G., Rault, C., Sova, R., Sova, A. (2009). Financial Development and Economic Growth: Evidence from Ten New EU Members. Economics and Finance Working Paper Series. Working Paper.
- Favara, G. (2003). An Empirical Reassessment of the Relationship between Finance and Growth, International Monetary Fund. Working Paper, Washington DC, IMF, p. 47.
- Khan, M.S., Senhadji, S. Abdelhak (2000). Financial Developmentand Economic Growth: An Overview, International Monetary Fund, Working Paper.
- Kozmenko, S.M., Korneyev, M.V., Makedon, V.V. (2014). Finansializatsia ekonomiky ta yii vplyv na indykatory sotsialno-ekonochnoho rozvytku okremykh krain, Aktualni problemy ekonomiky, 11 (161), pp. 290-298.
- Lapavitsas, C. (2009). Financialised Capitalism: Crisis and Financial Expropriation, Historical Materialism, 17 (2), pp. 114-148.
- Ram, R. (1999). Financial development and economic growth: Additional evidence, Journal of Development Studies, 35 (4), pp. 164-174.
- Rousseau, P., Wachtel, P. (2002). Inflation thre shold sand the finance-growth nexus, Journal of International Money and Finance, 21 (6), pp. 777-793.
- Vander Zwan, N. (2014). Making sense of financialization, Socio-Economic Review, 12, pp. 99-129.