Analysis of the impact of financial markets on economic growth
Year: 2024
Type: article
Abstract: Research identifies the significant role that financial markets play in mobilizing savings, promoting investment opportunities, and facilitating the allocation of capital to high-growth sectors within the Russian economy. This is exemplified through the use of co-integration of non-stationary time series of financial indicators and Gross Domestic Product (GDP), estimating parameters of the Vector Error Correction Model (VECM), and determining the impact of bank credit on the GDP value. Most researchers believe that this impact is not solely on growth but also influences the structure of the financial sector and the development of bank credit. Credit extended to institutions is thought to contribute more to growth than credit provided to individuals. One of the practically significant studies is the quantitative evaluation of the influence of the type of financial market structure (whether bank-oriented or stock market-based) on growth. It highlights the effect of the proportion of bank credit volume and securities issuance on economic growth in Russia for the period from the first quarter of 2003 to the fourth quarter of 2017. This analysis is conducted using the Gretl software for modeling.
Author: MAHDI MOHAMMED TALI
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4406208557