The Impact of Financial Development on Investment: a Review of International Literature
This article summarises the empirical literature on the impact of financial development on investment. It presents a topical analysis of empirical research that focuses mainly on the interaction between financial development and investment, determinants and measurement of both financial development...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius University Press
2018-12-01
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| Series: | Organizations and Markets in Emerging Economies |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/omee/article/view/14158 |
| _version_ | 1818147410988236800 |
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| author | Brian Muyambiri Nicholas M. Odhiambo |
| author_facet | Brian Muyambiri Nicholas M. Odhiambo |
| author_sort | Brian Muyambiri |
| collection | DOAJ |
| description | This article summarises the empirical literature on the impact of financial development on investment. It presents a topical analysis of empirical research that focuses mainly on the interaction between financial development and investment, determinants and measurement of both financial development and investment, and empirical findings on the relationship between the two variables under discussion. The study concludes that most of the research done on the relationship between financial development and investment is highly skewed towards assessing the relationship using mostly bank-based financial development indicators, as compared to the market-based financial development indicators. Given the number of studies assessed, the impact of financial development on investment appears to be inconclusive, at best. Moreover, the study shows that the relationship between these two macroeconomic variables seems to differ from country to country; it is dependent on the proxies used to measure the level of financial development, as well as the methodology employed. |
| first_indexed | 2024-12-11T12:34:49Z |
| format | Article |
| id | doaj.art-4e64c85ec3d84053b47a172cad8c1bab |
| institution | Directory Open Access Journal |
| issn | 2029-4581 2345-0037 |
| language | English |
| last_indexed | 2024-12-11T12:34:49Z |
| publishDate | 2018-12-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Organizations and Markets in Emerging Economies |
| spelling | doaj.art-4e64c85ec3d84053b47a172cad8c1bab2022-12-22T01:07:09ZengVilnius University PressOrganizations and Markets in Emerging Economies2029-45812345-00372018-12-019210.15388/omee.2018.10.00009The Impact of Financial Development on Investment: a Review of International LiteratureBrian Muyambiri0Nicholas M. Odhiambo1University of South AfricaUniversity of South AfricaThis article summarises the empirical literature on the impact of financial development on investment. It presents a topical analysis of empirical research that focuses mainly on the interaction between financial development and investment, determinants and measurement of both financial development and investment, and empirical findings on the relationship between the two variables under discussion. The study concludes that most of the research done on the relationship between financial development and investment is highly skewed towards assessing the relationship using mostly bank-based financial development indicators, as compared to the market-based financial development indicators. Given the number of studies assessed, the impact of financial development on investment appears to be inconclusive, at best. Moreover, the study shows that the relationship between these two macroeconomic variables seems to differ from country to country; it is dependent on the proxies used to measure the level of financial development, as well as the methodology employed.https://www.journals.vu.lt/omee/article/view/14158finance-investment nexusfinancial developmentinvestment |
| spellingShingle | Brian Muyambiri Nicholas M. Odhiambo The Impact of Financial Development on Investment: a Review of International Literature Organizations and Markets in Emerging Economies finance-investment nexus financial development investment |
| title | The Impact of Financial Development on Investment: a Review of International Literature |
| title_full | The Impact of Financial Development on Investment: a Review of International Literature |
| title_fullStr | The Impact of Financial Development on Investment: a Review of International Literature |
| title_full_unstemmed | The Impact of Financial Development on Investment: a Review of International Literature |
| title_short | The Impact of Financial Development on Investment: a Review of International Literature |
| title_sort | impact of financial development on investment a review of international literature |
| topic | finance-investment nexus financial development investment |
| url | https://www.journals.vu.lt/omee/article/view/14158 |
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