The impact of inflation on the financial sector development: Empirical evidence from Jordan
In any economy, the financial sector plays a fundamentally important role in achieving economic growth and thus achieving sustainable economic development. Therefore, interest in this sector and the improvement of its performance is considered a strategic goal for any country. Accordingly, this stud...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2021-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2021.1970869 |
| _version_ | 1818967772421423104 |
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| author | Khaled Batayneh Wasfi Al Salamat Mohammad Q.M. Momani |
| author_facet | Khaled Batayneh Wasfi Al Salamat Mohammad Q.M. Momani |
| author_sort | Khaled Batayneh |
| collection | DOAJ |
| description | In any economy, the financial sector plays a fundamentally important role in achieving economic growth and thus achieving sustainable economic development. Therefore, interest in this sector and the improvement of its performance is considered a strategic goal for any country. Accordingly, this study aims to analyze the short- and long-run impacts of inflation on the development of this sector on the Jordanian economy for the period from 1993 to 2018. To do so, the study uses an auto-regressive distributed lag bound testing approach, which is considered an advanced analytical model. Empirical findings confirmed that there is a statistically significant long- and short-run negative effect of inflation on financial sector development. On the contrary, there is a statistical significant long- and short-run positive impact of economic growth on financial sector performance. In addition, results confirmed that there is a positive support of the previous financial sector policies on financial sector performance in the current period. |
| first_indexed | 2024-12-20T13:54:06Z |
| format | Article |
| id | doaj.art-47b1e7d23cdb4e58a8c8623b1eaa05b2 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-20T13:54:06Z |
| publishDate | 2021-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-47b1e7d23cdb4e58a8c8623b1eaa05b22022-12-21T19:38:27ZengTaylor & Francis GroupCogent Economics & Finance2332-20392021-01-019110.1080/23322039.2021.19708691970869The impact of inflation on the financial sector development: Empirical evidence from JordanKhaled Batayneh0Wasfi Al Salamat1Mohammad Q.M. Momani2The Hashemite UniversityThe Hashemite UniversityThe Hashemite UniversityIn any economy, the financial sector plays a fundamentally important role in achieving economic growth and thus achieving sustainable economic development. Therefore, interest in this sector and the improvement of its performance is considered a strategic goal for any country. Accordingly, this study aims to analyze the short- and long-run impacts of inflation on the development of this sector on the Jordanian economy for the period from 1993 to 2018. To do so, the study uses an auto-regressive distributed lag bound testing approach, which is considered an advanced analytical model. Empirical findings confirmed that there is a statistically significant long- and short-run negative effect of inflation on financial sector development. On the contrary, there is a statistical significant long- and short-run positive impact of economic growth on financial sector performance. In addition, results confirmed that there is a positive support of the previous financial sector policies on financial sector performance in the current period.http://dx.doi.org/10.1080/23322039.2021.1970869financial sector developmentinflationardl approachcointegrationjordan |
| spellingShingle | Khaled Batayneh Wasfi Al Salamat Mohammad Q.M. Momani The impact of inflation on the financial sector development: Empirical evidence from Jordan Cogent Economics & Finance financial sector development inflation ardl approach cointegration jordan |
| title | The impact of inflation on the financial sector development: Empirical evidence from Jordan |
| title_full | The impact of inflation on the financial sector development: Empirical evidence from Jordan |
| title_fullStr | The impact of inflation on the financial sector development: Empirical evidence from Jordan |
| title_full_unstemmed | The impact of inflation on the financial sector development: Empirical evidence from Jordan |
| title_short | The impact of inflation on the financial sector development: Empirical evidence from Jordan |
| title_sort | impact of inflation on the financial sector development empirical evidence from jordan |
| topic | financial sector development inflation ardl approach cointegration jordan |
| url | http://dx.doi.org/10.1080/23322039.2021.1970869 |
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