The impact of financial development on economic indicators: a dynamic panel data analysis

Figures & data

Table 1. Descriptive statistics of the variables.

	Minimum	Maximum	Mean	Std. dev.
Economic growth	–32.11	71.18	3.81	3.14
Inflation	–11.68	1058.4	13.84	12.72
Employment	–19.45	29.08	2.09	1.75
Investment	–4.91	90.25	5.4	4.18
Money and quasi money	3.01	670.81	63.71	60.45
Liquid liability	5.52	350.91	57.51	46.01
Domestic bank credit	0.71	320.45	53.69	50.11
Domestic bank private credit	0.91	323.45	55.69	51.1
Foreign direct investment	–67.16	155.2	4.95	3.77
Government expenditure	3.74	80.22	16.61	8.07

Source: Authors calculation.

Table 2. Estimated results (dependent: economic growth).

	With law and order				Without law and order
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
$C$	4.83	2.19	2.38	–0.05	0.89	–2.44	5.89	–2.12
	(0.37)	(0.31)	(0.28)	(–0.08)	(0.07)	(–0.46)	(0.42)	(–0.06)
${GR}_{t-1}$	–0.09	–0.07	–0.35	–0.25	0.06	–0.05	–0.07	–0.08
	(–0.77)	(–0.85)	(–1.53)	(–1.54)	(0.37)	(–0.49)	(–0.93)	(–0.84)
$\mathit{INF}$	–0.13*	–0.02***	–0.02**	–0.04**	–0.01*	–0.03**	–0.04*	–0.03*
	(–1.80)	(–2.40)	(–2.19)	(–2.27)	(–1.85)	(–2.37)	(–1.88)	(–1.85)
$\mathit{EMP}$	0.15*	0.43**	0.38**	0.33**	0.21*	0.44**	0.45**	0.49**
	(1.68)	(2.12)	(2.20)	(2.10)	(1.97)	(2.23)	(2.39)	(2.45)
$\mathit{INV}$	0.54***	0.63***	0.72***	0.71***	0.39**	0.47***	0.43**	0.26**
	(3.84)	(3.83)	(3.83)	(4.97)	(2.44)	(2.63)	(2.40)	(2.22)
$\mathit{GEX}$	–0.29	–0.31	–0.4	–0.29	–0.33**	–0.43**	–0.35**	–0.33*
	(–1.30)	(–1.46)	(–1.41)	(–1.31)	(–2.23)	(–2.21)	(–2.17)	(–1.88)
$\mathit{LOR}$	0.34	0.32	0.71*	0.64*
	(0.98)	(0.78)	(1.76)	(1.75)	−	−	−	–
$M3$	–0.04**				–0.04**
	(–2.48)	−	−	−	(–2.43)	−	−	−
$M2$		–0.04**				–0.05**
	–	(–2.42)	−	−	−	(–2.77)	−	−
$\mathit{DBC}$			–0.03**				–0.02*
	–	–	(–2.41)	−	−	−	(–1.75)	−
$\mathit{DBPC}$				–0.09***				–0.02**
	−	–	−	(–2.86)	−	−	−	(–2.12)
$D$	–0.51**	–0.68**	–0.78**	–0.77**	–0.58*	–0.62**	–0.79**	–0.79**
	(–2.16)	(–2.25)	(–2.26)	(–2.15)	(–1.98)	(–2.21)	(–2.31)	(–2.16)
Arellano-Bond Test for AR(2)	0.662	0.343	0.399	0.367	0.889	0.562	0.69	0.455
Hansen Test	0.672	0.786	0.806	0.649	0.884	0.457	0.233	0.422

Note.

***, ** and * indicates that the value is significant at 1%, 5% and 10% and (.) denotes the t-values, respectively.

Source: Author’s Calculated.

Table 3. Estimated results (dependent: inflation).

	With real effective exchange rate				Without real effective exchange rate
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
$C$	13.92	16.35	29.43**	47.61**	10.54*	12.25**	8.70**	26.50***
	(1.14)	(1.49)	(2.55)	(2.63)	(1.81)	(2.62)	(2.51)	(2.74)
${\mathit{INF}}_{t-1}$	0.74***	0.59***	0.71***	0.76***	0.66***	0.77***	0.79***	0.69***
	(5.29)	(6.12)	(5.55)	(5.39)	(4.69)	(3.27)	(5.66)	(3.62)
$GR$	0.33	0.08	–0.34	–0.09	0.06	0.31	0.06	–0.03
	(0.28)	(0.38)	(–0.80)	(–0.48)	(0.47)	(0.51)	(0.52)	(–0.32)
$\mathit{GEXP}$	0.35	0.06	–0.96	–0.99	–0.4	–0.51	–0.24	–0.59
	(0.71)	(0.3)	(–1.56)	(–1.24)	(–0.77)	(–1.56)	(–0.60)	(–1.49)
$\mathit{EMP}$	0.47	0.37	–0.65	–0.75	–0.94	–0.88	–1.10	–0.53
	(0.78)	(0.65)	(–1.47)	(–1.27)	(–1.48)	(–1.31)	(–1.50)	(–1.12)
$\mathit{FDI}$	–0.23	–0.21	0.15	0.36	0.72**	0.60**	0.60**	0.56**
	(–1.10)	(–0.83)	(1.14)	(1.39)	(2.66)	(2.56)	(2.73)	(2.45)
$\mathit{REX}$	–0.27**	–0.31*	–0.20*	–0.21*
	(–2.30)	(–1.78)	(–1.82)	(–1.92)	−	−	−	−
$M3$	0.21				0.21*
	(1.38)	−	−	−	(1.79)	−	−	−
$M2$		0.06				0.20*
	−	(0.93)	−	−	−	(1.67)	−	−
$\mathit{DBC}$			0.06*				0.07*
	−	−	(1.76)	−	−	−	(1.75)	−
$\mathit{DBPC}$				0.05*				0.05*
	−	−	−	(1.77)	−	−	−	(1.77)
$D$	6.21***	5.51***	4.48***	4.92***	5.18***	4.54***	3.55***	4.18***
	(3.55)	(4.76)	(2.12)	(2.38)	(2.71)	(5.27)	(3.28)	(3.14)
Arellano-Bond test for AR(2)	0.236	0.203	0.228	0.246	0.249	0.168	0.328	0.286
Hansen Test	0.383	0.756	0.532	0.576	0.613	0.392	0.419	0.527

Note.

***, ** and * indicates that the value is significant at 1%, 5% and 10% and (.) denotes the t-values, respectively.

Source: Author’s Calculated.

Table 4. Estimated results (dependent: employment).

	(1)	(2)	(3)	(4)
$C$	–1.87	–3.05	–1.29	–1.29
	(–1.23)	(–1.10)	(–0.64)	(–0.84)
${\mathit{EMP}}_{t-1}$	0.24	0.08	–0.06	–0.05
	(1.50)	(0.73)	(–0.42)	(–0.63)
$GR$	0.51***	0.44***	0.30***	0.23***
	(3.10)	(4.27)	(5.87)	(3.71)
$\mathit{INF}$	0.019	0.017	0.014	0.022
	(1.77)	(1.34)	(1.39)	(0.59)
$\mathit{INV}$	0.32*	0.24*	0.26*	0.75*
	(1.68)	(1.76)	(1.86)	(1.92)
$\mathrm{}\mathit{WAG}$	–1.71	–1.18	–1.88	–1.77
	(–0.55)	(–0.46)	(–0.79)	(–0.89)
$M3$	0.02*
	(1.92)	−	−	−
$M2$		0.018**
	−	(2.69)	−	−
$\mathit{DBC}$			0.023*
	−		(1.70)	−
$\mathit{DBPC}$				0.037**
	−	−	−	(1.89)
$D$	0.28	0.4	0.48**	0.48*
	(0.99)	(1.25)	(2.42)	(1.98)
Arellano-Bond test for AR(2)	0.236	0.287	0.256	0.345
Hansen test:	0.32	0.428	0.354	0.42

Note.

***, ** and * indicates that the value is significant at 1%, 5% and 10% and (.) denotes the t-values, respectively.

Source: Author’s Calculated.