Financial system development and growth share a two-way relationship. A developed financial system enterprises real growth and a growing economy’s demand leads to the development of the financial ...sector. In order to realize the goals of development, it is important that the financial system should not only be developed but also be inclusive. Banking system/institutions of countries have played a vital role in promoting and establishing financial systems to meet the requirements of the majority of people. Improved access to banks results in financial inclusion and sustainable development. Globally, the country governments have made several policy decisions and adopted regulations to ensure that banks reach to majority of the people. This article aims to analyze the banking outreach for the countries of GCC for a period of seven years from 2010 to 2017. This analysis will be based on geographic and demographic indicators of the outreach of banks’ physical outlets in the form of bank branches and its ATMs. This analysis will help to identify the countries of GCC with easier geographic and demographic access.
The spirit of Islamic economics has recently developed in Indonesia, which is the context of this study evaluating the culture of using conventional accounting and economic systems. The objective of ...this study is to determine how the Islamic economy applies mainstream accounting and financial systems culturally. Our study explored the applicability of standard accounting and economic systems from an Islamic perspective. Initially, we gathered data on accounting information systems and Islamic Sharia from journals, conferences, books, and other relevant sources. Then, we used a comprehensive evaluation and interpretation coding system to acquire pertinent information to answer the project's concerns. We scoured Google Books, Taylor & Francis, Sage Publications, Elsevier, and other domestic scientific publications for information on the assessment and interpretation coding factors. The Islamic Sharia economic system is a system or mechanism that is regulated according to Islamic Sharia law, for example, in regulating business activities, classifying data, summarizing data, preparing reports, and analyzing finances and businesses using principles and rules that are derived from the Qur'an, hadith, and the understanding of scholars in order to realize a just and equitable society.
This study contributes to the creation of a model of effective economic relations by the organizer—the outsourcer between the participants of the regional ecological financial system—financial ...services clients, creditors, investors, insurers, and municipalities. This study proposes to reduce the financial limitations of business entities that are environmentally active by forming a regional ecological financial system, organized by an outsourcer for the provision of financial services. The outsourcer attracts financial instruments (FIs), including special environmental financial instruments (GFIs) and financial management mechanisms (FMs), to accelerate capital turnover. When calculating the financing models, the well-known concept of the innovation life cycle was used. Research on the relationship between variables “revenues from environmental taxation by country” and “the sum of all environmental revenues” in the EU27 budget for the period 2012–2021 made it possible to determine the Pearson coefficient, according to which countries were distributed according to the degree of connection strength according to the Chaddock scale: 32% of countries had a very high connection (0.9–1.0) during the study period, and 53% of EU countries had a noticeable and moderate connection (0.7–0.9). The proposed method for studying the relationship can be useful in managing financial flows attracted to the ecological financial system by an outsourcer.
We study the effects of investor protection on stock returns and portfolio allocation decisions. In our theoretical model, if investor protection is weak, wealthy investors have an incentive to ...become controlling shareholders. In equilibrium, the stock price reflects the demand from both controlling shareholders and portfolio investors. Due to the high demand from controlling shareholders, the price of weak corporate governance stocks is not low enough to fully discount the extraction of private benefits. Thus, stocks have lower expected returns when investor protection is weak. This has implications for domestic and foreign investors’ stockholdings. In particular, we show that portfolio investors’ participation in the domestic stock market and home equity bias are positively related to investor protection and provide original evidence in their support.
Access to formal financial services is a key determinant of financial inclusion and yet, informal mechanisms still dominate the financial system in developing countries. In this context, the purpose ...of our article is to investigate how the growing effort to harness mobile money designed for unbanked individuals may help to overcome barriers to access formal financial services. Using a unique dataset obtained from an individual-level survey conducted in Burkina Faso, we explore the interplay between mobile money innovation and pre-existing formal and informal financial instruments. Our main findings show that, overall there are no differences in the inclination of mobile money users and non-users to make deposits in formal or informal deposit instruments. However, a closer investigation reveals suggestive evidence that it may increase the probability of participants in informal mechanisms to make deposits in formal financial instruments, especially using a bank account. Moreover, considering disadvantaged groups, we find for women, irregular income and less educated individuals that mobile money may increase their probability to make deposits in a bank and/or credit union accounts. Our results are robust to using instrumental variables and propensity score matching techniques that mitigate the endogeneity problem. They also pass a number of robustness checks as well as considering an alternative dataset. Given the low access to formal financial services in developing countries, our findings taken together indicate how the increasing adoption of mobile money may act as a stepping-stone towards financial inclusion. (JEL Classification C83, D14, G21)
•The effects of mobile money on deposit behavior are investigated•The study uses a unique dataset obtained from an individual-level survey•Mobile money facilitates deposits using formal financial instruments•The use of mobile money benefits to participants in informal finance•Disadvantaged individuals are also positively impacted by the use of mobile money
Digital financial platforms are important for the development of the platform economy and are a significant source of innovation for the further development of China's financial system. At present, ...in terms of both market scale and technology, China's digital finance development is leading internationally. The positive impact of China's digital financial platforms on the real economy is evidenced by the number of innovative developments they have enabled. Nonetheless, because digital financial platforms have both technological and financial attributes, they pose potential risks and represent a challenge to regulation. For this reason, a regulatory framework adapted to the development of digital financial platforms and the digital financial industry needs to be established; one that adheres to the principles of financial support for the real economy and guides the direction of innovative digital financial platforms.
From an economic prospective, the relationship between financial innovation and economic growth has always been a critical aspect of the financial system. However, this relationship has not recieved ...extensive attention in academia. Therefore, this study examines the effect of financial innovation on economic growth in the context of developing and developed countries using 92 cross-sectional data over the period of 2002 to 2020, the fixed effect method of panel regression has been applied to examine the relationship between financial innovation and economic growth. This study has compared the results of developing and developed countries using different combinations of explanatory variables. The results of this study depict that various combinations of variables have varied impacts on dependent variable. This study has revealed the negative relationship between financial innovation and economic growth. However, domestic credit to private sector banks has the best proxy for financial innovation. This study suggests that regulators should focus on encouraging and discouraging financial innovation based on its impact on the economy.
Treasure Islands Hines, James R.
The Journal of economic perspectives,
10/2010, Letnik:
24, Številka:
4
Journal Article
Recenzirano
Odprti dostop
In movies and novels, tax havens are often settings for shady international deals; in practice, they are rather less flashy. Tax havens, also known as “offshore financial centers” or “international ...financial centers,” are countries and territories that offer low tax rates and favorable regulatory policies to foreign investors. For example, tax havens typically tax inbound investment at zero or very low rates and further encourage investment with telecommunications and transportation facilities, other business infrastructure, favorable legal environments, and limited bureaucratic hurdles to starting new firms. Tax havens are small; most are islands; all but a few have populations below one million; and they have above-average incomes. The United States and other higher-tax countries frequently express concerns over how tax havens may affect their economies. Do they erode domestic tax collections; attract economic activity away from higher-tax countries; facilitate criminal activities; or reduce the transparency of financial accounts and so impede the smooth operation and regulation of legal and financial systems around the world. Do they contribute to excessive international tax competition? These concerns are plausible, albeit often founded on anecdotal rather than systematic evidence. Yet tax haven policies may also benefit other economies and even facilitate the effective operation of the tax systems of other countries. This paper evaluates evidence of the economic effects of tax havens.
This article examines the impact of aid and its volatility on sectoral growth by relying on panel dataset of 37 sub-Saharan African (SSA) countries for the period 1983-2014. Findings from the ...system-generalized methods of moments show that, while foreign aid significantly drives sectoral growth, aid volatility deteriorates sectoral value additions impacting heavily on non-tradable sectors with no apparent effect on the agricultural sector. The deleterious effect of aid volatility on sectoral value additions in SSA is weakened by a well-developed financial system with significant impact on the tradable sector. Evidently, development of domestic financial markets enhances aid effectiveness.
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