7 articles have been collected and
translated in this book, including: financial development, economic growth,
financing, financial depth, the effects of inflation on economic growth,
financial structure of some countries.
“Financial
repression, financial development and economic growth” is an article written by Joseph H. Haslag and Jahyeong Koo.
Beliefs and researches of economic scientists have been discussed about
financial intermediation and its relationship with economic growth in the
introduction. On the other hand, the effects of economic growth on the
development of financial activities in countries have been mentioned.
“Finance and
growth: theory, evidences and mechanisms” is
an article written by Ross Levine. This paper reviews, appraises, and critiques
theoretical and empirical research on the connections between the operation of
the financial system and economic growth. While subject to ample qualifications
and countervailing views, the preponderance of evidence suggests that both
financial intermediaries and markets matter for growth and that reverse
causality alone is not driving this relationship. Furthermore, theory and
evidence imply that better developed financial systems ease external financing
constraints facing firms, which illuminates one mechanism through which
financial development influences economic growth.
“The impact of
financial depth on long-term economic growth in countries” is an article written by J. Colarante. Direct and indirect effects
of financial sector is examined while in another one, more completed model is
considered regarding the possibility of feedback effects among financial and
real economic sectors. “FILM VECM” method is used in this research. Finally,
the author concluded that financial depth has a positive effect on GDP
according to the first model and financial intermediaries have a direct impact
on real sector of economy according to the second model.
“Nonlinear Effects of Inflation
on Economic Growth” is an article written by Michael Sarel. This paper
examines the possibility of nonlinear effects of inflation on economic growth.
It finds evidence of a significant structural break in the function that
relates economic growth to inflation. The break is estimated to occur when the
inflation rate is 8 percent. Below that rate, inflation does not have any
effect on growth, or it may even have a slightly positive effect. When the
inflation rate is above 8 percent, however, the estimated effect of inflation
on growth rates is significant, robust and extremely powerful. The paper also
demonstrates that when the existence of the structural break is ignored, the
estimated effect of inflation on growth is biased by a factor of three.
“Financial Structure
in Chile: Macroeconomic Developments and Microeconomic Effects” is an article written by Francisco Gallego and Norman Loayza. The
objectives of this paper are, first, to describe the developments in Chilean
financial markets at the macroeconomic level and, then, to examine their
effects at the level of firms. After reviewing the main government policies
towards financial markets in the last three decades, the paper describes the
remarkable changes in the size, activity, and efficiency of the banking sector
and other capital markets (bond, stock, pension and insurance markets) during
1980s and 1990s. Then, the paper analyzes econometrically the access to
financial markets, the financing (balance-sheet) structure, and the revenue
growth performance in a sample of 79 Chilean firms during the period 1985-1995.
“Financial
Deepening, Economic Growth and Development: Evidence from Selected Sub-Saharan
African Countries” is an article
written by John E. Udo Ndebbio . At first, the
relationship between financial depth, growth and economic development has been
examined. In the following, the effectiveness of economic growth in Sub-Saharan
African Countries has been investigated regarding factors such as financial
depth and other long-term explanatory variables such as the ratio of foreign
trade to GDP, inflation tax and etc. finally, the author concludes that if the
supply of these assets is low, financial depth will be low in countries and in
order to achieve sustainable and considerable growth in product, these
countries need suitable financial policies to increase financial depth.
“The
role of financial depth in economic development: theories and lessons from
Tunisia” is another article written by Benzina Triguyi. Post-Keynesian
concept of financial system role has been discussed and it has been caparisoned
with Pre-Keynesian concept.
