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ECONOMETRIC ESTIMATION OF FACTORS’S INFLUENCE ON THE SIZE OF THE FINANCIAL SECTOR
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ECONOMETRIC ESTIMATION OF FACTORS’S INFLUENCE ON THE SIZE OF THE FINANCIAL SECTOR
Annotation
PII
S042473880000525-6-1
Publication type
Article
Status
Published
Authors
Oleg Bazhenov  Ekaterina Kosova Anton Safronov Marina Sutormina Alena Galenkova
Edition
Volume 53 Issue 2
Pages
40-49
Abstract
Currently there is no consensus, among the researchers and experts about how are the size, structure of the financial sector and economic growth interconnected. Financial sector, as an essential component of the national economy includes all the financial relationships between the various actors in the process of formation, distribution and use of financial resources. The main objectives of any economic policy are stability, economic growth, while sustainable development is closely connected with the financial sector’s ability to successfully carry out their functions. Then, the main purpose of the financial system in the economy is to ensure long-term economic growth through effective financing of the economy. The authors analyze the effect of different rates of economic growth on the size of financial sector, based on regression analysis of panel cross-country annual data from 2000 to 2015 in the developed (USA, Canada, Germany, France) and developing countries (BRICS) with the help of a software package Stata. Based on the research conclusions of the tendency and the strength of influence of such factors as the economic growth of per capita consumption, the value of the discount rate, the rate ratio of issued bank loans and deposits, the share of investment in fixed assets in GDP and inflation on the size of the financial sector. The results may be used by scientists and economists forecasting the development of the national economy and individual financial and non-financial sectors of the economy. The results may be of interest to financial institutions and economists who study the same or similar issues.
Keywords
finance, growth factors, regression analysis, per capita consumption, fixed investment, rate of inflation, national stock exchange, developing countries
Date of publication
01.04.2017
Number of purchasers
4
Views
1020
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0.0 (0 votes)
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