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| Author | : Claudia Chilundo |
| Publisher | : |
| Total Pages | : 206 |
| Release | : 2020 |
| Genre | : Cities and towns |
| ISBN | : |
| Author | : Xiaodai Xin |
| Publisher | : |
| Total Pages | : |
| Release | : 2004 |
| Genre | : Debts, External |
| ISBN | : |
Abstract: Both economic growth and stabilization require a well-functioning financial system, which includes the central bank and private financial institutions. This dissertation is comprised of three essays on monetary policy and financial development which are related to the roles of the central bank and private financial institutions. To better stabilize the economy, a central bank needs to formulate an optimal strategy for monetary policy and pursues an appropriate objective (targeting regime). In a forward-looking New Keynesian model with persistent output and inflation, the first essay (chapter 2) evaluates a broad hybrid targeting regime when the central bank operates under discretionary monetary policy. By employing the numerical analysis and comparing the performance of different targeting regimes, I find that the hybrid targeting regime yields a social loss closest to that under the optimal committed policy, generating a better outcome than other policy regimes. The second essay (chapter 3) provides new micro-level evidence for the positive relationship between financial development and economic growth based on a large sample of cross-country firm-level data. By examining an important micro channel through which financial development reduces the costs of external finance to firms, I find that firms that are more externally dependent grow faster in countries with more developed financial systems. The third essay (chapter 4) investigates the impact of external debt on long-term investment and its interaction with domestic financial intermediation in emerging markets. Extending the Ramsey-Cass-Koopmans model to a small open economy with the role of financial intermediation, I find that the overall effect of a high level of external debt on investment depends heavily on the degree of domestic financial intermediation. Using a large sample of panel data on 76 developing countries over the last three decades, the empirical results indicate that when a country's domestic banking sector develops to a certain degree, the high level of external debt facilitates investment.
| Author | : Jeannine N. Bailliu |
| Publisher | : |
| Total Pages | : 242 |
| Release | : 1999 |
| Genre | : Banks and banking |
| ISBN | : |
| Author | : Viktor Khanzhyn |
| Publisher | : |
| Total Pages | : 105 |
| Release | : 2012 |
| Genre | : Finance |
| ISBN | : 9781267538321 |
In this dissertation I revisit three aspects of the role financial development plays in the development of the real economy. In Chapter 2 I present estimation of the marginal effect of a widely agreed upon episode of financial development - U.S. banking deregulation in the 1980s - on the components of growth accounting identity for the U.S. manufacturing sector. Significantly positive effects were found on the growth rate of capital and labor inputs, and no significant effect was found for TFP change. The evidence provides support for the finance-growth nexus hypothesis. In Chapter 3 I test the hypothesis that abundant credit conditions can provide disincentives for non-financial firms to increase efficiency. Difference-in-differences method was applied to test for the change in average productive efficiency of U.S. manufacturing bank credit-dependent firms during four episodes of change in the credit. Significant increase was found during the large credit crunch of 1987 - 1992, and a significant drop in efficiency was found during expansion thereafter, which provides support for the Schumpeterian "creative destruction" and Hicksian "quiet life" hypotheses. Chapter 4 presents a study of relationship between private credit and sustainability for a crossection of 119 countries. I investigated the effect on three major sustainability indexes and their components: ESI, EPI, and Ecological Footprint. I found that countries with higher credit to GDP ratios (after controlling for GDP levels and growth rates) only perform better in spheres where regulation is in place (e.g. air pollution restrictions), and perform worse in areas with more long-term negative consequences: non-renewable resource management, biodiversity, deforestation, etc. The findings show that complex indexes tend to mask those negative effects.
| Author | : Heinz P. Rudolph |
| Publisher | : |
| Total Pages | : 216 |
| Release | : 1995 |
| Genre | : Capital movements |
| ISBN | : |
| Author | : Biniv K. Maskay |
| Publisher | : |
| Total Pages | : |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
| Author | : Pietro Tommasino |
| Publisher | : |
| Total Pages | : 35 |
| Release | : 2005 |
| Genre | : |
| ISBN | : |
| Author | : Esteban Jaimovich |
| Publisher | : |
| Total Pages | : 198 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
| Author | : Pilhyun Kim |
| Publisher | : |
| Total Pages | : 125 |
| Release | : 2006 |
| Genre | : Economic development |
| ISBN | : |
Abstract: The primary part of my dissertation investigates the potential effects of financial sector development on economic growth. In order to reveal the nature of these effects, I focus on the potential channels of influence from the financial to the real sector. I investigate the link between the financial sector and economic growth focusing on the role of the financial sector in funding innovative activities. To this aim, I construct a model where the economy is driven by innovative activities that require both human capital and external funding. My analysis shows that when certain conditions are satisfied, there exists a unique equilibrium where the growth rate of the economy is jointly determined by the levels of human capital and financial development. An implication of this is that financial liberalization policies that do not adequately address the fundamentals of the economy can cause bank failures and possibly a financial crisis. Furthermore, the model suggests that, depending on the parameter values of the economy, there may be two forms of poverty traps, one with a small number of bankers and the other with a large number of bankers. Also, I examine empirically whether financial development has any effect on the rate of technological innovation using patent applications as a proxy for innovative output. For a sample of twenty eight countries from 1970 to 2000, my analysis shows that financial development is indeed significant in raising the growth rate of innovative output. In addition, I investigate whether financial development enhances investment efficiency. The efficiency channel hypothesis states that financial development may increase the efficiency of investment by directing the funds to the most productive uses. I examine if there is any evidence of financial development positively affecting the efficiency of aggregate investment using developing countries as a sample. Compared to the volume channel, the efficiency channel has received relatively little attention until recently. I address the issue of the efficiency channel using two alternative measures of aggregate investment efficiency. I find that, for developing countries, financial development significantly and positively affects productivity of investment.
| Author | : Katharina Diekmann |
| Publisher | : |
| Total Pages | : 402 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
