Subject. The article addresses relationship between financial indicators and economic growth. Objectives. The aim is to investigate the impact of financial indicators on economic growth in developing economies, including the period during crises, using aggregated indicators. Methods. The study employs the correlation and regression analysis. Results. The analysis searched for statistically significant factors for the period from 2000 to 2020 for five groups of countries, using the International Monetary Fund database and comparison of samples, i.e. total, by region, during the last two crises (2008–2009 and 2019–2020) and between crises. The results show that the most statistically significant and positive impact on economic growth is exerted by the volume of exports of goods and services in the general sample and by region. During the crisis and inter-crisis periods, the volume of imports of goods and services has a statistically significant positive impact, and the greatest negative impact during the crisis period is made by external debt. In the inter-crisis period, investments also have a positive impact. The results of the analysis of the total sample indicate the need for further selection of independent variables. Conclusions. The findings can be applied to compare and evaluate the impact of new crises on economic growth. In addition, they may be used by public authorities, when developing financial and economic concepts and strategic plans for the development of emerging market economies.
Schumpeter J.A. The Theory of Economic Development. Cambridge, MA, Harvard University Press, 1934.
Ductor L., Grechyna D. Financial development, real sector, and economic growth. International Review of Economics and Finance, 2015, vol. 37, pp. 393–405. URL: Link
Botev J., Egert B., Jawadi F. The nonlinear relationship between economic growth and financial development: Evidence from developing, emerging and advanced economies. International Economics, 2019, vol. 160, pp. 3–13. URL: Link
Narayan P.K., Narayan S. The short-run relationship between the financial system and economic growth: New evidence from regional panels. International Review of Financial Analysis, 2013, vol. 29, pp. 70–78. URL: Link
Karim Z.A., Nizam R., Law S.H., Hassan M.K. Does Financial Inclusiveness Affect Economic Growth? New Evidence Using a Dynamic Panel Threshold Regression. Finance Research Letters, 2022, vol. 46, part A, no. 102364. URL: Link
Shun-Jen Hsueh, Yu-Hau Hu, Chien-Heng Tu. Economic growth and financial development in Asian countries: A bootstrap panel Granger causality analysis. Economic Modelling, 2013, vol. 32, pp. 294–301. URL: Link
Samargandi N., Fidrmuc J., Ghosh S. Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries. World Development, 2015, vol. 68, pp. 66–81. URL: Link
Shigeki Ono. Financial development and economic growth nexus in Russia. Russian Journal of Economics, 2017, vol. 3, no. 3, pp. 321–332. URL: Link
Bittencourt M. Financial development and economic growth in Latin America: Is Schumpeter right? Journal of Policy Modeling, 2012, vol. 34, iss. 3, pp. 341–355. URL: Link
Shahbaz M., Van Hoang T.H., Mahalik M.K., Roubaud D. Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis. Energy Economics, 2017, vol. 63, pp. 199–212. URL: Link
Adu G., Marbuah G., Mensah J.T. Financial development and economic growth in Ghana: Does the measure of financial development matter? Review of Development Finance, 2013, vol. 3, iss. 4, pp. 192–203. URL: Link
Emara N., El Said A. Financial inclusion and economic growth: The role of governance in selected MENA countries. International Review of Economics and Finance, 2021, vol. 75, pp. 34–54. URL: Link
Wahidin D., Akimov A., Roca E. The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries. International Review of Financial Analysis, 2021, vol. 77, no. 101865. URL: Link
Durusu-Ciftci D., Ispir M.S., Yetkiner H. Financial development and economic growth: Some theory and more evidence. Journal of Policy Modeling, 2017, vol. 39, iss. 2, pp. 290–306. URL: Link
Cheng-Feng Wu, Shian-Chang Huang, Tsangyao Chang et al. The nexus of financial development and economic growth across major Asian economies: Evidence from bootstrap ARDL testing and machine learning approach. Journal of Computational and Applied Mathematics, 2020, vol. 372, no. 112660. URL: Link
King R.G., Levine R. Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 1993, vol. 108, iss. 3, pp. 717–737. URL: Link
Bojanic A.N. The Impact of Financial Development and Trade on the Economic Growth of Bolivia. Journal of Applied Economics, 2012, vol. 15, iss. 1, pp. 51–70. URL: Link60003-8
Uddin G.S., Sjö B., Shahbaz M. The causal nexus between financial development and economic growth in Kenya. Economic Modelling, 2013, vol. 35, pp. 701–707. URL: Link
Bo Zhang, Peng Zhou. Financial development and economic growth in a microfounded small open economy model. North AmericanJournal of Economics and Finance, 2021, no. 58, no. 101544. URL: Link
Asteriou D., Spanos K. The relationship between financial development and economic growth during the recent crisis: Evidence from the EU. Finance Research Letters, 2019, vol. 28, pp. 238–245. URL: Link
Ahmed F., Kousar S., Pervaiz A., Shabbir A. Do institutional quality and financial development affect sustainable economic growth? Evidence from South Asian countries. Borsa Istanbul Review, 2021, vol. 22, iss. 1, pp. 189–196. URL: Link
Samargandi N., Fidrmuc J., Ghosh S. Financial development and economic growth in an oil-rich economy: The case of Saudi Arabia. Economic Modelling, 2014, vol. 43, pp. 267–278. URL: Link
Sethi P., Chakrabarti D., Bhattacharjee S. Globalization, financial development and economic growth: Perils on the environmental sustainability of an emerging economy. Journal of Policy Modeling, 2020, vol. 42, iss. 3, pp. 520–535. URL: Link
Ohlan R. The relationship between tourism, financial development and economic growth in India. Future Business Journal, 2017, vol. 3, iss. 1, pp. 9–22. URL: Link
Adeniyi O., Oyinlola A., Omisakin O., Egwaikhide F.O. Financial development and economic growth in Nigeria: Evidence from threshold modelling. Economic Analysis and Policy, 2015, vol. 47, pp. 11–21. URL: Link
Guangchen Li, Weixian Wei. Financial development, openness, innovation, carbon emissions, and economic growth in China. Energy Economics, 2021, vol. 97, no. 105194. URL: Link
Gokmenoglu K.K., Amin M.Y., Taspinar N. The Relationship among International Trade, Financial Development and Economic Growth: The Case of Pakistan. Procedia Economics and Finance, 2015, vol. 25, pp. 489–496. URL: Link00761-3
Ekeocha D.O., Ogbuabor J.E., Orji A., Kalu U.I. International tourism and economic growth in Africa: A post-global financial crisis analysis. Tourism Management Perspectives, 2021, vol. 40, no. 100896. URL: Link
