Yes / Although at the national level the relationship between financial development, human capital and economic growth has received some attention, this is largely an under-researched area at the sub-national level. Human capital may impact economic growth through the channel of innovation and along with financial development could be complementary or substitute in their relationship to economic growth. Also, human capital investment, enabled by the financial sector development, not only affects growth but also directly and indirectly affects poverty reduction through the channel of growth. In this study we examine the interaction between financial development, human capital and economic growth at the sub-national level using panel datasets covering 23 states of India for the period 1999-2013. Our analysis suggests that there is evidence of positive relationship between human capital and financial development to economic growth.

yes / Although at the national level the relationship between financial development, human capital and economic growth has received some attention, this is largely an under-researched area at the sub-national level. Human capital may impact economic growth through the channel of innovation and along with financial development could be complementary or substitute in their relationship to economic growth. Also, human capital investment, enabled by the financial sector development, not only affects growth but also directly and indirectly affects poverty reduction through the channel of growth. In this study we examine the interaction between financial development, human capital and economic growth at the sub-national level using panel dataset covering 23 states of India for the period 1999-2013. Our analysis suggests that there is evidence of positive relationship between human capital and financial development to economic growth. / New journal still to be published by Oxford Academic Journals (OUP). Final draft suppressed for 24 months - check when journal published as to exact embargo - sm - 25/04/2018 © 2018 Oxford University Press. Reproduced in accordance with the publisher's self-archiving policy. This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Journal of Banking, Finance and Sustainable Development following peer review. The definitive publisher-authenticated version [as above] is available online at: / The full text will be available at the end of the publisher's embargo, 2 years after publication.

This thesis attempts to establish what determines financial development in Africa by making use of cross sectional and panel data techniques. Financial development, the dependent variable, is measured using the banking sector indicator liquid liabilities (M3) while trade openness, financial openness and the GDP growth rates are used as independent variables. The data used in this research ranges from 1975-200, though for the cross sectional analysis particular years (1975, 1985, 1995, and 2005) are focused on. The empirical results from both regression types generally suggest that trade openness has a significantly positive effect on Africa’s financial development. Cross-sectional results show that financial openness and the GDP growth rate are significantly negative in 2005. With the panel data results, financial openness is significantly negative in explaining financial development, while the GDP growth rate is insignificant suggesting that it is not an important determinant of financial development for African countries.

This dissertation is an investigation into one of the important functions of the banking system: to transform short-term liquid deposits into long-term illiquid financial assets that can fund long gestation activities and, thus, raise the rate of economic growth. To investigate this function empirically, the dissertation uses two new data sets on the maturity of bank credit to the private sector. First data set contains yearly observations covering 74 countries during the period from about 1990 to 2005, while the second data set contains quarterly observations covering 14 transition countries from about 1995 to 2006. Using the data on a broad set of countries, the dissertation shows that economic growth is enhanced in countries where the financial system extends more long-term credit. This finding is the first empirical confirmation of the theoretical predictions regarding the liquidity transformation function of banks. Furthermore, using the same data set, the dissertation shows that credit maturity depends on a number of institutional and economic factors. The determinants of credit maturity have an impact on economic growth via their influence on the availability of long-term external financing. Credit maturity is longer in countries with strong legal institutions, with low inflation, with deeper financial markets, and with schemes for sharing credit information between financial institutions. From a policy perspective, the institutions for sharing credit information probably present the most interest because their establishment is a policy choice. Findings from the broad set of countries are confirmed in the second data set using several definitions of maturity. Additional results from the second data set suggest that credit maturity is longer in countries at the higher level of economic development, with less liquid stock markets, and with more privately owned domestic banks. Furthermore, the results suggest that credit information sharing mechanisms lengthen the maturity of credit if credit information sharing institutions are privately owned or have greater quality of information.

What is the impact of financial development on economic growth and how institutional quality affects the role of financial development on economic growth? This thesis attempts to answer to these questions using a fixed effects estimation and two-step GMM estimator on a panel dataset of 93 countries from 2000-2007. The preposition is that financial sector development increases the availability of extra finance thereby increasing firms investment, which is essential for economic growth. The findings suggest that bank credit has anegative impact on economic growth. However when interacted with protection of property rights, bank credit has a positive impact economic growth. Additionally results further indicate that stock market capitalization is important for economic growth. For Countries that exhibit low levels of protection of property rights, stock market capitalization has a negative impact but countries that exhibit high protection of property rights the impact of stock market capitalization on growth is positive.

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<p>This thesis attempts to establish what determines financial development in Africa by making use of cross sectional and panel data techniques. Financial development, the dependent variable, is measured using the banking sector indicator liquid liabilities (M3) while trade openness, financial openness and the GDP growth rates are used as independent variables. The data used in this research ranges from 1975-200, though for the cross sectional analysis particular years (1975, 1985, 1995, and 2005) are focused on.</p><p>The empirical results from both regression types generally suggest that trade openness has a significantly positive effect on Africa’s financial development. Cross-sectional results show that financial openness and the GDP growth rate are significantly negative in 2005. With the panel data results, financial openness is significantly negative in explaining financial development, while the GDP growth rate is insignificant suggesting that it is not an important determinant of financial development for African countries.</p>

Magister Commercii - MCom / Inequality in South Africa has long been recognised as one of the most salient features of our society. Despite many efforts by the government to reduce inequality since our democratic transition in 1994, progress has been limited. The historic patterns of accumulation and economic concentration have continued to feed into South Africa’s patterns of uneven and combined development. Moreover, financial markets in many countries are undeniably incomplete, segmented, and inefficient. This is largely attributed by high transaction costs for both institutions and clients as well as biases against certain parts of the market. Therefore, people will continue to transact outside the formal financial system if they lack easy access and use of formal financial institutions. Private resources are often used in formal areas that provide better access and higher return on investment for private institutions. As a result, the development of the poorest areas remains relatively neglected.

Foreign private capital flows, portfolio investment and foreign direct investment (FDI), have been important external sources of financing growth and investment around the world. Since the start of the new millennium, FDI has become a major source of external finance for many developing countries mainly due to the economic benefits associated with this investment. Developing countries have been jostling for FDI in an attempt to resolve some of their structural problems, such as poverty. Poverty is a sensitive and persistent issue in most developing countries. More recently, FDI into the financial sector (FSFDI) has increased significantly, reshaping the sector significantly. The widely-held perception is that FSFDI is associated with financial development, job creation and skills transfer which are critical factors in alleviating poverty. In spite of the significant inflow of investment, new estimates of poverty in the developing world are disconcerting.Foreign private capital flows, portfolio investment and foreign direct investment (FDI), have been important external sources of financing growth and investment around the world. Since the start of the new millennium, FDI has become a major source of external finance for many developing countries mainly due to the economic benefits associated with this investment. Developing countries have been jostling for FDI in an attempt to resolve some of their structural problems, such as poverty. Poverty is a sensitive and persistent issue in most developing countries. More recently, FDI into the financial sector (FSFDI) has increased significantly, reshaping the sector significantly. The widely-held perception is that FSFDI is associated with financial development, job creation and skills transfer which are critical factors in alleviating poverty. In spite of the significant inflow of investment, new estimates of poverty in the developing world are disconcerting.The main objective of this study was to evaluate the impact of FSFDI on poverty alleviation in developing countries. Linear regression analysis was done to determine the relationship between FSFDI inflow and other variables that were viewed as reducing agents of poverty, namely financial sector employment, employee training and financial access. The sample data used for this research represents South Africa and a convenience sampling technique was utilised. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Despite the growing literature on financial development-economic growth nexus, there exists a paucity of empirical studies that explore the impact of financialisation on economic growth while focusing on the competitiveness of the financial sector. This study examines the revealed comparative advantages of 34 developing African countries from the period 2008 to 2017 and goes further to determine the impact of the revealed comparative advantage indices on economic growth. Revealed comparative advantage is used as an alternative proxy to financialisation, while economic growth is measured in terms of GDP per capita. In order to determine the impact, a panel study approach was followed, using a multiple linear regression model. The study produces two findings. Firstly, we find that the majority of African countries do not reveal a comparative advantage in financial services. This finding confirms our expectation. Secondly, we find that there exists a negative and significant relationship between financialisation and economic growth. The findings suggest that as developing countries in Africa gain comparative advantages in financial services, those gains have a detrimental impact on their economic growth. Informed by the findings of this study, which have implications for financial market development in Africa, the main recommendations are firstly that regulators need to play their part in reducing the cost of business for financial services institutions—particularly compliance costs, so as to encourage competition and development in the financial services sector, without compromising their responsibility to protect consumers. Secondly, better insights regarding cross-border trading and its impact on economic growth, profitability and the accumulation of foreign currency reserves need to be gained, in order to come up with more conducive regulatory frameworks that do not result in penalties for local firms, rendering them uncompetitive relative to foreign firms. Additionally, management at financial institutions have the responsibility of ensuring that benefits derived from their cross-border business go beyond shareholder value, but that reinvestment into the real economy takes place either through increased lending or equity investments and should also ensure that sufficient investments are made into the infrastructure required to increase the institution's competitiveness. Finally, Government and regulators needs to pay attention to how cross-border financial transactions are taxed, especially considering the new era of FinTech's, cryptocurrencies, and deepening regional integration, while at the same time ensuring that there is greater depth, bread and liquidity of their local financial markets.