Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries

Eglantina Hysa; Naqeeb Ur Rehman

doi:10.1007/978-3-031-30996-0_4

Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries

Eglantina Hysa^*
, Naqeeb Ur Rehman

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

1 Scopus citations

Abstract

This study provides some other pieces of evidence on the relation and the contribution of financial development to economic growth for two specific regions, such as the group of new members (NMS) of the EU and the Western Balkan countries (WBC). This study applies panel data using relevant proxies for the model. According to the study results and based on threshold regression, a non-linear association is confirmed between financial and economic growth. More specifically, the interaction effect of remittances and financial development complement the economic growth of NMS. In addition, the findings show that both, financial development and remittances, are pushing the reduction the economic growth in WBC. Although the NMS can be well-integrated with the rest of the EU countries, there is still room for improvement in governance and enterprise restructuring. To gain sustainable growth across developing countries, policymakers should target the following: (1) increasing the saving ratio to increase the productive investment; (2) narrowing interest rate margins to encourage domestic credit to the private sector.

Original language	English
Title of host publication	Crisis after the Crisis
Subtitle of host publication	Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA
Editors	Luminita Chivu, Ignacio De Los Ríos Carmenado, Jean Vasile Andrei
Publisher	Springer Nature
Pages	49-67
Number of pages	19
ISBN (Print)	9783031309953
DOIs	https://doi.org/10.1007/978-3-031-30996-0_4
State	Published - 2023

Publication series

Name	Springer Proceedings in Business and Economics
Volume	26
ISSN (Print)	2198-7246
ISSN (Electronic)	2198-7254

Bibliographical note

Publisher Copyright:
© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals

Keywords

Economic Growth
Financial Development
New Member States
Remittances
Western Balkans

ASJC Scopus subject areas

General Business, Management and Accounting
General Economics, Econometrics and Finance

Access to Document

10.1007/978-3-031-30996-0_4

Cite this

Hysa, E., & Rehman, N. U. (2023). Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries. In L. Chivu, I. De Los Ríos Carmenado, & J. V. Andrei (Eds.), Crisis after the Crisis: Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA (pp. 49-67). (Springer Proceedings in Business and Economics; Vol. 26). Springer Nature. https://doi.org/10.1007/978-3-031-30996-0_4

Hysa, Eglantina ; Rehman, Naqeeb Ur. / Economic Growth Through Financial Development : Empirical Evidences from New Member States and Western Balkan Countries. Crisis after the Crisis: Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA. editor / Luminita Chivu ; Ignacio De Los Ríos Carmenado ; Jean Vasile Andrei. Springer Nature, 2023. pp. 49-67 (Springer Proceedings in Business and Economics).

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abstract = "This study provides some other pieces of evidence on the relation and the contribution of financial development to economic growth for two specific regions, such as the group of new members (NMS) of the EU and the Western Balkan countries (WBC). This study applies panel data using relevant proxies for the model. According to the study results and based on threshold regression, a non-linear association is confirmed between financial and economic growth. More specifically, the interaction effect of remittances and financial development complement the economic growth of NMS. In addition, the findings show that both, financial development and remittances, are pushing the reduction the economic growth in WBC. Although the NMS can be well-integrated with the rest of the EU countries, there is still room for improvement in governance and enterprise restructuring. To gain sustainable growth across developing countries, policymakers should target the following: (1) increasing the saving ratio to increase the productive investment; (2) narrowing interest rate margins to encourage domestic credit to the private sector.",

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Hysa, E & Rehman, NU 2023, Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries. in L Chivu, I De Los Ríos Carmenado & JV Andrei (eds), Crisis after the Crisis: Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA. Springer Proceedings in Business and Economics, vol. 26, Springer Nature, pp. 49-67. https://doi.org/10.1007/978-3-031-30996-0_4

Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries. / Hysa, Eglantina; Rehman, Naqeeb Ur.
Crisis after the Crisis: Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA. ed. / Luminita Chivu; Ignacio De Los Ríos Carmenado; Jean Vasile Andrei. Springer Nature, 2023. p. 49-67 (Springer Proceedings in Business and Economics; Vol. 26).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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T1 - Economic Growth Through Financial Development

T2 - Empirical Evidences from New Member States and Western Balkan Countries

AU - Hysa, Eglantina

AU - Rehman, Naqeeb Ur

PY - 2023

Y1 - 2023

N2 - This study provides some other pieces of evidence on the relation and the contribution of financial development to economic growth for two specific regions, such as the group of new members (NMS) of the EU and the Western Balkan countries (WBC). This study applies panel data using relevant proxies for the model. According to the study results and based on threshold regression, a non-linear association is confirmed between financial and economic growth. More specifically, the interaction effect of remittances and financial development complement the economic growth of NMS. In addition, the findings show that both, financial development and remittances, are pushing the reduction the economic growth in WBC. Although the NMS can be well-integrated with the rest of the EU countries, there is still room for improvement in governance and enterprise restructuring. To gain sustainable growth across developing countries, policymakers should target the following: (1) increasing the saving ratio to increase the productive investment; (2) narrowing interest rate margins to encourage domestic credit to the private sector.

AB - This study provides some other pieces of evidence on the relation and the contribution of financial development to economic growth for two specific regions, such as the group of new members (NMS) of the EU and the Western Balkan countries (WBC). This study applies panel data using relevant proxies for the model. According to the study results and based on threshold regression, a non-linear association is confirmed between financial and economic growth. More specifically, the interaction effect of remittances and financial development complement the economic growth of NMS. In addition, the findings show that both, financial development and remittances, are pushing the reduction the economic growth in WBC. Although the NMS can be well-integrated with the rest of the EU countries, there is still room for improvement in governance and enterprise restructuring. To gain sustainable growth across developing countries, policymakers should target the following: (1) increasing the saving ratio to increase the productive investment; (2) narrowing interest rate margins to encourage domestic credit to the private sector.

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KW - Remittances

KW - Western Balkans

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ER -

Hysa E, Rehman NU. Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries. In Chivu L, De Los Ríos Carmenado I, Andrei JV, editors, Crisis after the Crisis: Economic Development in the New Normal - 2021 International Conference of Economic Scientific Research - Theoretical, Empirical and Practical Approaches ESPERA. Springer Nature. 2023. p. 49-67. (Springer Proceedings in Business and Economics). doi: 10.1007/978-3-031-30996-0_4

Economic Growth Through Financial Development: Empirical Evidences from New Member States and Western Balkan Countries

Abstract

Publication series

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this