The role of institutional quality in the relationship between financial development and economic growth: Emerging markets and middle-income economies
BORSA ISTANBUL REVIEW, cilt.23, sa.6, ss.1-19, 2023 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 23 Sayı: 6
- Basım Tarihi: 2023
- Doi Numarası: 10.1016/j.bir.2023.10.002
- Dergi Adı: BORSA ISTANBUL REVIEW
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, EconLit, Directory of Open Access Journals
- Sayfa Sayıları: ss.1-19
- Ankara Üniversitesi Adresli: Evet
Özet
In this study, the relationship between economic growth and financial development was analyzed for emerging markets and middle-income
economies. The effect of financial development on growth, whether there is institutional quality or not, has also been investigated. In addition, which financial development indicator is more effective for growth has been examined. Six institutional quality indicators and seven financial
development indicators were used. According to the Dumitrescu–Hurlin causality test results, there is a causality relationship between all financial
development indicators and growth. According to the estimation results, financial development indicators have a positive effect on growth in the
presence of institutional quality. However, if institutionalization is not included in the model, the effect of financial development indicators on
economic growth is statistically insignificant.