Financial intermediation and how it contributes to economic growth essay
The purpose of this article is to examine the role of the banking system in the growth of the Vietnamese economy in the transition process that began in the 1990s. An ARDL approach, building on the argument in the association between financial intermediaries and economic growth, Hao 2006 believes that financial intermediation has a causal effect and a positive influence. The relationship between finance and economic growth has received considerable attention in the economic development literature in recent decades. However, there is little interest in African countries, and in particular West African countries. This article attempts to fill this gap by using causality testing empirically: 1. Introduction. In any economy, financial resources are relevant in promoting growth through efficient financial intermediation Sulaiman and Aluko, 2015. Financial intermediaries, especially banks, play a crucial role in the overall financial system of a country by undertaking various activities that are essential for economic growth, Tel: 30- 210-367-6406. Abstract: This article aims to explore the importance of financial intermediation in economic activity. We also examine the effects of monetary and financial factors. Although financial technology FinTech has become one of the essential financial sector development strategies of many countries around the world in recent years, previous studies have analyzed the influence of financial growth from various aspects, but few literary works have been devoted to the impact of financial growth. FinTech on the financial sector. This study aims to analyze the impact of the development and stability of the financial sector on economic growth based on quantitative methods that provide robust results. The following research hypotheses are tested: H1 The relationship between the stability of financial sector development and economic growth is non-linear. The presence of a higher degree of Islamic financial assets in the economy contributes to economic growth in the short term. Financial intermediation and economic growth. pdf.This article aims to explore the importance of financial intermediation in economic activity. We also examine the effects of monetary factors and financial frictions on the relationship between financial intermediation and economic growth, the drivers of business cycles, and how shocks propagate through the intermediation process.;