Evaluating the Nexus Between Financial Deepening and Economic Growth: Evidence from Ukraine

Kondrat Iryna () and Kots Olha ()
Additional contact information
Kots Olha: Lviv Polytechnic National University, Lviv, Ukraine

Financial Sciences. Nauki o Finansach, 2018, vol. 23, issue 1, 49-64

Abstract: In this paper systemic problems of Ukrainian banking sector are reviewed and the solutions are offered. The main objective of the study is to examine the relationship between a financial deepening and economic growth in Ukraine by estimating several multiple regression models over the 1993 to 2015 period. A real GDP growth per capita was used as an indicator for the economic growth. The domestic credit to private sector (% of GDP) was used as an index of financial depth. The study concludes that financial deepening causes a slight impact on the economic growth of Ukraine. A low level of impact is an indicator of a limitedness of lending to the real economy. This means that banking sector has not become the real driving force of the economic growth in Ukraine yet. The study suggests a statement that policy makers should design the policies which will encourage lending especially high tech production, small and mid-size business, micro financing to the real economy to promote economic growth and increase employment.

Keywords: financial deepening; economic growth; banking sector; multiple regression analysis (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.15611/fins.2018.1.04 (text/html)

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:vrs:finsci:v:23:y:2018:i:1:p:49-64:n:4

DOI: 10.15611/fins.2018.1.04

Access Statistics for this article

Financial Sciences. Nauki o Finansach is currently edited by Jacek Uchman

More articles in Financial Sciences. Nauki o Finansach from Sciendo
Bibliographic data for series maintained by Peter Golla ().