Asymmetric Impact of Financial Intermediary Development in Low- and High-Income Countries
| Autor: | Ya-Kai Chang, Chi-Chun Yang |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Production sector
Economic expansion quantile regression three-sector endogenous growth model Geography Planning and Development Financial intermediary TJ807-830 Monetary economics Management Monitoring Policy and Law TD194-195 Human capital Renewable energy sources financial intermediation 0502 economics and business Economics human capital GE1-350 050207 economics 050208 finance Environmental effects of industries and plants Renewable Energy Sustainability and the Environment 05 social sciences Growth model sustainability economic growth Quantile regression Environmental sciences Sustainability High income countries |
| Zdroj: | Sustainability, Vol 12, Iss 5960, p 5960 (2020) Sustainability Volume 12 Issue 15 |
| ISSN: | 2071-1050 |
| Popis: | This study uses the quantile regression method developed by Koenker and Bassett (1978) to examine the asymmetric effect of financial intermediary development on economic growth in low- and high-income countries. A three-sector neoclassical growth model composed of a representative family sector, production sector, and the financial intermediary sector is constructed, and the equilibrium solutions determine the variables employed in the empirical model. The empirical results reveal an asymmetric relationship between financial intermediary development and economic growth. Financial intermediary development is the main driving force of economic growth for high-income countries only, not for low-income countries. Overall, this study suggests that countries should not develop financial intermediaries indiscriminately in the pursuit of economic expansion, especially for low-income countries. Our empirical findings have important policy implications for regulators who are especially concerned about countries&rsquo sustainable economic growth. |
| Databáze: | OpenAIRE |
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