Relationship between financial innovation, financial depth, and economic growth

The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by...

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Autor principal:	Yuliia Shapoval
Formato:	article
Lenguaje:	EN
Publicado:	LLC "CPC "Business Perspectives" 2021
Materias:	economic development financial sector innovation OECD R&D regression Finance HG1-9999
Acceso en línea:	https://doaj.org/article/63937e9de3fd42528abeed1744587037
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spelling	oai:doaj.org-article:63937e9de3fd42528abeed17445870372021-11-22T09:54:04ZRelationship between financial innovation, financial depth, and economic growth10.21511/imfi.18(4).2021.181810-49671812-9358https://doaj.org/article/63937e9de3fd42528abeed17445870372021-11-01T00:00:00Zhttps://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15838/IMFI_2021_04_Shapoval.pdfhttps://doaj.org/toc/1810-4967https://doaj.org/toc/1812-9358The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the ﬁnancial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.Yuliia ShapovalLLC "CPC "Business Perspectives"articleeconomic developmentfinancial sectorinnovationOECDR&DregressionFinanceHG1-9999ENInvestment Management & Financial Innovations , Vol 18, Iss 4, Pp 203-212 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	economic development financial sector innovation OECD R&D regression Finance HG1-9999
spellingShingle	economic development financial sector innovation OECD R&D regression Finance HG1-9999 Yuliia Shapoval Relationship between financial innovation, financial depth, and economic growth
description	The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the ﬁnancial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.
format	article
author	Yuliia Shapoval
author_facet	Yuliia Shapoval
author_sort	Yuliia Shapoval
title	Relationship between financial innovation, financial depth, and economic growth
title_short	Relationship between financial innovation, financial depth, and economic growth
title_full	Relationship between financial innovation, financial depth, and economic growth
title_fullStr	Relationship between financial innovation, financial depth, and economic growth
title_full_unstemmed	Relationship between financial innovation, financial depth, and economic growth
title_sort	relationship between financial innovation, financial depth, and economic growth
publisher	LLC "CPC "Business Perspectives"
publishDate	2021
url	https://doaj.org/article/63937e9de3fd42528abeed1744587037
work_keys_str_mv	AT yuliiashapoval relationshipbetweenfinancialinnovationfinancialdepthandeconomicgrowth
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Relationship between financial innovation, financial depth, and economic growth

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