Showing 4 results for Financial Development
Sajad Ebrahimi,
Volume 2, Issue 3 (3-2011)
Abstract
This study investigates the effects of terms of trade shocks and international reserves on the real effective exchange rate. For this purpose is used panel data technique and data related to 20 countries for 1980- 2008 period. Estimation results show that international reserves have buffer effect in terms of trade shocks and cause terms of trade shocks have less effect on real exchange rate. Of course this result confirms in developing countries, but don’t confirm in developed countries. In addition according to results, reserve effect in reduction terms of trade shocks effect in oil exporting countries is more than other countries. Also, according to estimations in this study, increase in financial development reduces buffer role of international reserves.
Dr Jahangarde, Sara Ali Asgari,
Volume 2, Issue 4 (6-2011)
Abstract
Macroeconomic performance has improved in many countries in the world in the last fifteen years or so. Much of the literature has concentrated on how central bank independence, inflation targeting regimes, and currency :::union:::s have contributed to improving the effectiveness of monetary policy and hence macroeconomic performance. Since the financial system is a key component of the monetary transmission mechanism, we study how a country’s financial development affects monetary policy efficiency in 28 developed and developing countries within 1995-2006. Specifically, our objective is to derive monetary policy efficiency measures (PEMs) - derivative from Krause and Rioja- for 28 Developed and developing countries and analyze the impact that the size and depth of the banking sector and the capital sector have on policy performance. In our empirical analysis we use three financial development measures: private credit, liquid liabilities, and a financial aggregate index that comprises banking and stock market measures. The Results of model estimation with generalized method of moments (GMM) technique, shows that financial development with mentioned indicators has a positive and significant effect on monetary policy efficiency. Also supervision in central bank independency and inflation targeting regimes -as control variables- has positive and significant effect on monetary policy efficiency. This result doesn’t make a difference whether the country is developed or developing and in the both of them more developed financial markets, controlling the central bank independency and applying inflation targeting regimes, significantly help to achieve a more efficient monetary policy.
Abolfazl Shahabadi, Mahsoomeh Ahmadi, Ali Moradi Ali Moradi,
Volume 9, Issue 31 (3-2018)
Abstract
The insurance industry as a means of transferring risk and paying damages, ensures the future and the confidence of individuals and as an investor's institution, It cumulation the saving resources and allocates it to the needs of investment and economic growth of the countries. Therefore, it is necessary to identify the factors influencing the development of this industry in countries with a low insurance penetration and action must be taken regarding reinforcement the increasing factors and Elimination its decreasing factors.In this regard, the present study has tried to determine the interaction between financial development and economic freedom indicators (total index, size of government, legal system and property rights, sound money, freedom to trade internationally and regulations) on the penetration insurance in Fifteen unsuccessful insurers will be insured over the period 2014-2000. For this purpose, the research model was estimated using panel data and generalized moment’s method. The results it shows the interaction of financial development and all index of economic freedom on insurance penetration the in selected countries have had a positive and meaningful. Also, the individual effect of financial development and total economic freedom index is positive and significant. However, their individual influence on the insurance penetration is less than their interaction. Finally, the effect of control variables including per capita income, human capital and urbanization rate on the insurance penetration in the selected countries have had a positive and meaningful and the effect of unemployment and inflation have had a negative and meaningful.
Ebrahim Abdi, Farhad Khodadad Kashi, Mrs. Yeganeh Mosavi Jahromi,
Volume 9, Issue 33 (10-2018)
Abstract
The present study examined the impact of financial development on the investment of the companies listed on the Tehran Stock Exchange. To achieve this goal, data gathered from 258 companies during 2005 to 2016 and the dynamic generalized method of moments were utilized to formulate the investment model with financial constraints. The results of the study showed that these companies faced financial constraints on investment and financial development has increased their investment by reducing the financial constraints. The results also indicated that the positive effect of financial development on investment has been bigger in the case of larger companies than in smaller companies. It was further revealed that during the economic boom, financial constraints on companies were reduced and financial development led to the reinforcement of the positive effect of the boom on reduction of the companies’ financial constraints
