The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020
This paper aims to investigate the relationship between the development of the financial market and per capita income. For this, panel data methods were used to analyze proxy variables of depth, risk and liquidity of the financial system for a heterogeneous sample of 95 countries from 1980 to 2020....
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2025-01-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18141 |
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| author | Felipe Massafera Luciano Ferreira Gabriel |
| author_facet | Felipe Massafera Luciano Ferreira Gabriel |
| author_sort | Felipe Massafera |
| collection | DOAJ |
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This paper aims to investigate the relationship between the development of the financial market and per capita income. For this, panel data methods were used to analyze proxy variables of depth, risk and liquidity of the financial system for a heterogeneous sample of 95 countries from 1980 to 2020. The results suggest that while depth and liquidity of the financial system are positively related to per capita income, the risk level of the financial system is negatively related to it. Furthermore, bank credit was shown to be more significant in increasing the level of per capita income for developing countries. In developed countries, however, capital market variables most affected per capita income.
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| format | Article |
| id | doaj-art-04b0f21ccc0b46e28f7d094ae98ece8b |
| institution | Kabale University |
| issn | 2037-3635 2037-3643 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj-art-04b0f21ccc0b46e28f7d094ae98ece8b2025-02-02T12:06:59ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432025-01-017731110.13133/2037-3643/18141The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020Felipe Massafera0Luciano Ferreira Gabriel1Universidade Federal de Juiz de Fora (UFJF)Universidade Federal de Viçosa; Universidade Federal de Juiz de Fora (UFJF); National Council for Scientific and Technological Development (CNPq, Brazil) This paper aims to investigate the relationship between the development of the financial market and per capita income. For this, panel data methods were used to analyze proxy variables of depth, risk and liquidity of the financial system for a heterogeneous sample of 95 countries from 1980 to 2020. The results suggest that while depth and liquidity of the financial system are positively related to per capita income, the risk level of the financial system is negatively related to it. Furthermore, bank credit was shown to be more significant in increasing the level of per capita income for developing countries. In developed countries, however, capital market variables most affected per capita income. https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18141per capita incomecapital marketsbanking credit marketfinancial services view |
| spellingShingle | Felipe Massafera Luciano Ferreira Gabriel The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 PSL Quarterly Review per capita income capital markets banking credit market financial services view |
| title | The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 |
| title_full | The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 |
| title_fullStr | The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 |
| title_full_unstemmed | The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 |
| title_short | The effect of financial development on per capita income: A panel data analysis for heterogeneous countries between 1980 and 2020 |
| title_sort | effect of financial development on per capita income a panel data analysis for heterogeneous countries between 1980 and 2020 |
| topic | per capita income capital markets banking credit market financial services view |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18141 |
| work_keys_str_mv | AT felipemassafera theeffectoffinancialdevelopmentonpercapitaincomeapaneldataanalysisforheterogeneouscountriesbetween1980and2020 AT lucianoferreiragabriel theeffectoffinancialdevelopmentonpercapitaincomeapaneldataanalysisforheterogeneouscountriesbetween1980and2020 AT felipemassafera effectoffinancialdevelopmentonpercapitaincomeapaneldataanalysisforheterogeneouscountriesbetween1980and2020 AT lucianoferreiragabriel effectoffinancialdevelopmentonpercapitaincomeapaneldataanalysisforheterogeneouscountriesbetween1980and2020 |