Economic Growth and Financial Development : Effects of Capital Flight in Emerging Economies

https://www.springer.com/gp/book/9783030790028 This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike. Preface 6 Financial Development, Economic Growth and Capital Flight in the Era of Financial Crisis 6 About the Book 8 Contents 11 About the Editors 13 Financial Inclusion in Developing Countries: Applying Financial Technology as a Panacea 15 1 Introduction 15 2 Theoretical Perspective 17 2.1 Financial Inclusion 17 2.2 Financial Inclusion in Developing Countries 19 2.3 Financial Technology as a Tool to Enhance Financial Inclusion Through Nontraditional Bank Methods 22 3 Methodology 24 4 Empirical Results 25 5 Conclusion 30 References 32 Revisiting the East Asian Financial Crises: Lessons from Ethics and Development Patterns 36 1 Introduction 36 2 East Asian Development: Miracle, Myth, or Success? 38 3 An Ethical Capitalism 40 4 Concluding Remarks and Prospective Scenarios: Reforms, Development, and Ethics 42 References 43 Financial Development and Natural Resource Rents-Human Capital Nexus: A New Approach 45 1 Introduction 45 2 Review of Literature 47 2.1 The Impact of Resource Rents on Human Capital Accumulation 47 2.2 Financial Development, Natural Resource Rents, and Human Capital Accumulation 49 3 Methodology 53 4 Empirical Results 56 5 Conclusion 59 Appendices 62 References 64 Financial Inclusion Leads to Export Market Penetration: A Panel Study on Asian and African Countries 68 1 Introduction 68 2 Review of Literature 71 3 Theoretical Framework, Model Specification, and Data 74 3.1 Theoretical Framework and Model Specification 74 3.1.1 Export Market Penetration Index 74 3.1.2 Financial Inclusion Index 75 3.1.3 Economic Development 75 3.1.4 Employment Rate 76 3.1.5 Institutional Quality 76 3.2 Data Sources 77 4 Econometric Methodological Framework 77 4.1 Dynamic Panel Data Model Estimator 77 5 Empirical Analysis 78 6 Conclusions and Policy Implications 79 Appendix 80 References 81 Is Finance–Growth Nexus Nonlinear? Evidence from Linear and Nonlinear Causality Analysis 83 1 Introduction 83 2 Theoretical Framework 86 3 Literature Review 87 3.1 Finance-Growth Nexus: Cross-country and Panel Studies Evidence 87 3.2 Finance-Growth Nexus: Time Series Evidence 89 4 Econometric Methodology 90 4.1 Linear VAR Granger Causality 90 4.2 Nonlinear Granger Causality 91 5 Data and Variables Description 93 6 Empirical Results 93 6.1 Linear Granger Causality 93 6.2 Nonlinear Granger Causality 100 7 Robustness Analysis 104 8 Conclusion 108 References 109 Effectiveness of Macroprudential Policies: Panel Data Evidence on the Role of Institutions, Financial Structure, and Banking R... 113 1 Introduction 113 2 Data and Methodology 115 3 Empirical Results 117 3.1 Main Regression Results 117 3.2 Institutional Quality 118 3.3 Business Environment 120 3.4 Financial Structure 121 3.5 Banking Sector Regulations 121 4 Concluding Remarks 123 References 123 Financial Liberalization, Economic Growth, and Capital Flight: The Case of Pakistan Economy 125 1 Introduction 125 2 Overview of Economic Freedom in Pakistan 127 3 Linkages of Economic Growth to Economic Freedom 130 4 The Political Economy of Financial Liberalization 131 5 Evolution of Pakistan ́s Exchange and Trade Controls 133 5.1 Phase I (1972-1981): Fixed Exchange Rate Regime and Partial Lifting of Trade Controls 135 5.2 Phase II (1982-1998): Managed Floating Exchange Rate and Liberalization Initiatives 135 5.3 Phase III (July 1998-July 2000): Multiple Exchange Rate and Dirty Float Regimes 136 5.4 Phase IV (July 2000-2009): Flexible Exchange Rate Regime and Trade Liberalization 136 6 The Aftermath of Nationalization Policy of Bhutto Era 136 7 Globalization of Pakistani Business Firms and Its Impediments 138 8 Financial Liberalization and Economic Growth: Pakistan ́s Case 140 9 Discussion and Recommendations 141 References 143 Financial Liberalization, Capital Movements, and Economic Growth in Asia: A Panel Structural VAR Approach 145 1 Introduction 145 2 Literature Review 147 3 Data and Methodology: Panel Structural Vector Autoregressive (Panel SVAR) Model 154 4 Empirical Results 155 5 Conclusion and Suggestion 159 References 160 Financial Development-Economic Growth Nexus: Theoretical Underpinnings, Empirical Evidence, and Critical Reflections 164 1 Introduction 164 2 Financial Development 165 3 Economic Growth 167 4 Financial Development and Economic Growth 168 4.1 Theory 168 4.2 Empirical Evidence 170 4.3 Methodological Issues 173 4.3.1 Measuring FD and EG 175 Quantity Measures 176 Structural Measures 176 5 FD and EG in Islamic Context 177 5.1 Islamic Banks (IBs) and EG 177 5.2 Conventional Banks (CBs) and EG 178 6 Critical Reflections 179 7 Conclusion 181 References 182 New Insights on the Trading Volume-Return Relationship: Evidence from the Three Largest Stock Exchanges 188 1 Introduction 188 2 Theoretical Framework on the Dynamic Volume-Return Relationship 191 3 Econometric Methodology 193 4 Empirical Results 197 5 Robustness Checks 206 6 Conclusions 208 Appendix 210 References 211 Corporate Social Responsibility Practices of Multinational Companies and Sustainable Development: An Economic Perspective 214 1 Introduction 214 2 Corporate Social Responsibility and Triple Bottom Line 216 3 Corporate Social Responsibility Practices of Multinational Companies 219 4 Corporate Social Responsibility and Economic Impact 222 5 MNCs ́ Corporate Social Responsibility and Sustainable Development 224 6 Conclusion 226 References 227 Investigating the Impact Natural Resource Abundance on Capital Flight: Evidence from African Countries 233 1 Introduction 233 2 Literature Review 236 3 Data, Model, and Methodology 238 4 Empirical Findings 240 5 Conclusions and Policy Implications 241 References 242 "This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike"--Back cover