The Impact of Financial Instablity on Economic Growth: BRICT Economies

Filiz Erataş Sönmez and Doğan Uysal
Additional contact information
Filiz Erataş Sönmez: Manisa Celal Bayar University
Doğan Uysal: Manisa Celal Bayar University

Business and Economics Research Journal, 2018, vol. 9, issue 1, 25-48

Abstract: The aim of this study is to investigate the impact of financial instability on economic growth. Depart from the hypothesis that financial instability affects economic growth negatively, firstly the definition of instability is made and then focused on the causes of instability to understand a conceptual framework better. In this study, non-stationary dynamic panel data analysis has been used to analyze not only examine the heterogeneity of the variables but also to consider cross-section dependency between cross section units. The second-generation panel unit root tests are utilized in this model, the long-term regression coefficients have been estimated and panel causality analysis is used to determine the direction of the causality relationship between the economic growth and financial instability. The empirical findings of the study support the hypothesis which suggest that financial instability has adverse effects on economic growth.

Keywords: Financial Instability; Economic Growth; Panel Data Analysis; BRICT (search for similar items in EconPapers)
JEL-codes: C23 E44 F41 F43 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.berjournal.com/the-impact-of-financial ... owth-brict-economies Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0311

Access Statistics for this article

Business and Economics Research Journal is currently edited by Adem Anbar

More articles in Business and Economics Research Journal from Uludag University, Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Adem Anbar ().