The European Bank for Reconstruction and Development, headquartered in London, England, fosters the transition toward market-oriented economies and promotes private and entrepreneurial initiatives in Central and Eastern Europe and the Commonwealth of Indep

European Bank for Reconstruction and Development (EBRD)

This article re-examines the finance-growth nexus in China using principal components analysis and ARDL bounds testing approach to cointegration. The results suggest that principal components have an effective role in examining the links between growth and financial development and, that financial development fosters economic growth.

Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests

How green technology innovation affects carbon emission efficiency: evidence from developed countries proposing carbon neutrality targets

Technological innovation and sustainable development : Does the stage of development matter?

Technological innovation and environmental quality nexus in India: Does inward remittance matter?

The paper examines the long-run relationship between innovation and per capita economic growth in the 19 European countries over the period 1989–2014. This study uses six different indicators of innovation: patents-residents, patents-non-residents, research and development expenditure, researchers in research and development activities, high-technology exports, and scientific and technical journal articles to examine this long-run relationship with per capita economic growth. Using cointegration technique, the study finds evidence of long-run relationship between innovation and per capita economic growth in most of the cases, typically with reference to the use of a particular innovation indicator. Using Granger causality test, the study finds the presence of both unidirectional and bidirectional causality between innovation and per capita economic growth. These results vary from country to country, depending upon the types of innovation indicators that we use in the empirical investigation process. Most importantly, the study finds that all these innovation indicators are considerably linked with per capita economic growth. This particular linkage is either supply-leading or demand-following in some occasions, while it is the occurrence of both in some other occasions. The policy implication of this study is that countries should recognize the differences in innovation and per capita economic growth in order to maintain sustainable development in these countries.

https://www.econstor.eu/bitstream/10419/194846/1/890512752.pdf

Does innovation promote economic growth? Evidence from European countries

Bond market development and economic growth: The G-20 experience

The paper examines the long-run relationship between banking sector development and economic growth in 25 ARF countries for the period 1960–2012. Using principal component analysis for the construction of development index and vector auto-regressive model for testing the Granger causalities, the study finds the presence of both unidirectional and bidirectional causality between banking sector development and economic growth. The policy implication of this study is that the economic policies should recognize the differences in the banking sector development and economic growth in order to maintain sustainable development in the 25 ARF countries.

Development of banking sector and economic growth: the ARF experience

The paper examines the long-run relationship between development of insurance sector and economic growth in G-20 countries for the period 1980-2011. Using Vector Auto-Regressive (VAR) model for testing the Granger causalities, the study finds the presence of both unidirectional and bidirectional causality between development of insurance sector and economic growth. The policy implication of this study is that the economic policies should recognize the differences in the development of insurance sector and economic growth in order to maintain sustainable development in the G-20 countries.Key Words: Development of insurance sector, Economic growth, VAR, Granger causality, G-20(ProQuest: ... denotes formulae omitted.)INTRODUCTIONIn this paper, we analyze the relationship between economic growth and six dimensions of insurance sector, a sub-sector of the financial development. The six dimensions of in suran ce sector include life in surance density, non-life insurance density, total insurance density, life insurance penetration, non-life insurance penetration and total insurance penetration. These are extensively used as proxies of insurance market activities and particularly with reference to the studies of the relationships between development of insurance sector and macroeconomic factors such as gross domestic product, interest rate, inflation, and so on (see, for instance, Ward and Zurbruegg, 2000; Zheng et al., 2009; Chen et al., 2012; Chen et al., 2013; and Guo and Huang, 2013).Usually, financial development refers to aggregate size of the financial sector, its sectorial composition, and a range of attributes of individual sectors that determine their effectiveness in meeting users' requirements. The evaluation of financial structure should cover the roles of the key institutional players, including the central bank, commercial and merchant banks, saving institutions, development financial institutions, insurance companies, mortgage entities, pension funds, the stock market, and other financial market institutions (IMF, 2005; and Zaman et al., 2012). Most of the financial literature provides wide-coverage on financial sector development, particularly with reference to both banks and stock market development, and its link to economic growth. However, the inclusion of insurance sector in growth enhancing process is having low coverage and has received much less attention than the banking and equity markets (see, for instance, Guo and Huang, 2013; and Lee et al., 2013a). Moreover, the inclusion of insurance sector in economic growth are documented in the following literature: Beenstock et al. (1986), Wasow and Hill (1986), Cummins and Outreville (1987), Outreville (1996 and 1990), Enz (2000), Ward and Zurbruegg (2000), Beck and Webb (2003), Harrington and Yu (2003), Hussels et al. (2005), Kugler and Ofoghi (2005), Webb et al. (2005), Arena (2008), Haiss and Sumegi (2008), Vadlamannati (2008), Curak et al. (2009), Avram et al. (2010), Andersson et al. (2010), Ching et al. (2010), Han et al. (2010), Lee et al. (2010), Nektarios (2010), Lee (2011), Liu (2011), Chang and Lee (2012), Chen et al. (2012), Horng et al. (2012), Lee and Chiu (2012), Lee et al. (2012), Teresa and Garcia (2012), Chang et al. (2014), Chen et al. (2013), Dragos and Dragos (2013), Lee (2013), Lee et al. (2013b), Cristea et al., (2014), and Liu and Lee (2014).Insurance market is a late development industry, causing the difficulties on assessing the role of insurance in the development process (Outreville, 1990). This study adds the insurance coverage to the finance literature by addressing two important questions: first, the existence of cointegration between Development of Insurance Sector (DIS) and per capita economic growth (GDP); and second, the presence of long-run and short-run direction of causality between DIS and GDP. The focus is on G-20 countries during the period 1980-2013. Therefore, the insurance services, like other financial services, has fully grown in quantitative importance as an integral part of the general development of the financial sector, with the emphasis more recently pitching to insurance business (Lee et al. …

Development of Insurance Sector and Economic Growth: The G-20 Experience

The study tries to evaluate whether banking competition impacts the banking stability in the case of 32 Single European Market countries, and whether a guiding principle focus on banking competition is appropriate as a loom to boost banking stability. This study finds the interactions between banking competition and banking stability in 32 European countries between 1996 and 2014 with a panel vector auto-regressive model. Our observed results show that there is a cointegrating relationship between the two. Moreover, banking competition is a causative factor in banking stability in the long run. Thus, a focus on banking competition will enhance the banking stability of these countries.

Debaleena Chatterjee

Papers

Does innovation promote economic growth? Evidence from European countries

Bond market development and economic growth: The G-20 experience

Development of banking sector and economic growth: the ARF experience

Development of Insurance Sector and Economic Growth: The G-20 Experience

Banking Competition and Banking Stability in SEM Countries: The Causal Nexus