Financial system development and its association with the state governance aspects for all transition economies

Mitreva, Mila (2018) Financial system development and its association with the state governance aspects for all transition economies. Masters thesis, University of Sheffield.

Text Dissertation_Mila.pdf Download (4MB)

Abstract

The current thesis examined the association among the financial system development and the State Governance aspects for all transition economies. Domestic credit to private sector over GDP was taken as dependent variable, while, Gross fixed capital formation, inflation, Foreign Direct Investment, GDP per capita growth as the main control variables. Furthermore, the State Governance indicators, Voice & Accountability, Political Stability and Absence of Violence, Government Effectiveness, Rule of law, Regulatory quality and Control of Corruption were taken as the institutional variables. Secondary data was collected from the World Bank Database and the sample period was chosen from 2000 until 2016. Moreover, the countries were divided in four groups, South-Eastern, Ex-Soviet and Central Europe, as well as a group consisting of all twenty nine transition economies. For each group six models were build composed of all of the control variables and one institutional variable in each of them. Hence, for obtaining more specific results, the analysis was based on the period before (2000-2008), after the crisis (2008-2016) and for the whole sample period (2000-2016). Additionally, dummy variable was added in order to see the effect from the recent financial crisis. Regarding the tests applied, the first step involved application of the Panel Unit Root test in order to determine the stationarity of the variables. The second step was the application of the Hausman test in order to determine whether the regressions should be run with fixed or random effects. In the third step the regressions were run and in the final step, Granger-causality test was applied, through which the causality between the dependent variable and the significant variable from each model was determined.

Item Type:	Thesis (Masters)
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Economics
Depositing User:	Mila Mitreva
Date Deposited:	08 Nov 2021 10:44
Last Modified:	08 Nov 2021 10:44
URI:	https://eprints.ugd.edu.mk/id/eprint/28710

Actions (login required)

View Item