Rezvan Torabi; Mahmoud Eshraghi; Elham Nagheli
Volume 4, Issue 1 , January 2017, , Pages 56-65
Abstract
Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic ...
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Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic literature, it is always emphasized on establishment of stability and sustainable growth via financial development. However, financial development requires financial tools such as an efficient banking system whose efficiency is possible through competitiveness and financial liberalization. The present study explores financial stability and economic performance in OPEC countries during the time period 2000-2013. It is applicable from objective aspect and descriptive-analytical from methodological aspect. It explores the relationship between financial sector and economic performance using the generalized method of moments (GMM) following Creel et al. (2014). The results disclosed that the effect of independent variable of financial stability on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This showed that increasing of financial stability and departing from financial crises decreases the investment risk and it is increased when transaction costs, production, and economic growth are increased in these countries. Likewise, the results demonstrated that the effect of the independent variable of financial liberalization on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This indicated that increasing of financial liberalization and improvement of financial transactions among countries will decrease the investment risk and it is increased when transaction costs, production, and economic growth are increased.
Seyyed Mohsen Khalifeh Soltani; Elham Nagheli
Volume 2, Issue 12 , December 2015, , Pages 1445-1455
Abstract
Global, financial and regional integrations for developing countries that are not prepared to enter free trade can be the most effective way for gradual opening of national economies in such countries and merging of them in the global economy. On the other hand, the construction and housing sector needs ...
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Global, financial and regional integrations for developing countries that are not prepared to enter free trade can be the most effective way for gradual opening of national economies in such countries and merging of them in the global economy. On the other hand, the construction and housing sector needs macroeconomic capitals for up-to-dating, investment and increased employment in this sector that can attract other countries' capitals given the integration among countries and reduction of technology transfer barriers in the region which is finally led to increased production. Four dependent variables and four models are employed in the present study. Economic fluctuations are adopted from different indices of the economic sector. In the last step, the results are compared with each other indicating the innovative aspect of this study. The effect of financial integration and housing price on economic fluctuations is explored in the current study via GMM method during the time period 2000-2013. Given the obtained results, housing price causes to stimulate production and increase economic fluctuations. Similarly, integration has a positive effect on increased economic activities.