Financialization: curse or salvation? The case of Latvia, a small and post-transition economy
The role of financial sector has increased significantly since the 1980s, introducing a new term or phenomenon i.e. the financialization of the economy. There is still some imprecision about the nature and dynamics of financialization, including its impact on the economy. The main task of the financ...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Entrepreneurship and Sustainability Center
2022-03-01
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| Series: | Entrepreneurship and Sustainability Issues |
| Online Access: | https://jssidoi.org/jesi/article/943 |
| _version_ | 1797364869594349568 |
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| author | Joanna Stawska Ramona Rupeika-Apoga Maciej Malaczewski Iwona D. Czechowska Fatima Sol Murta |
| author_facet | Joanna Stawska Ramona Rupeika-Apoga Maciej Malaczewski Iwona D. Czechowska Fatima Sol Murta |
| author_sort | Joanna Stawska |
| collection | DOAJ |
| description | The role of financial sector has increased significantly since the 1980s, introducing a new term or phenomenon i.e. the financialization of the economy. There is still some imprecision about the nature and dynamics of financialization, including its impact on the economy. The main task of the financial sector is to allocate funds for its most productive use, while ensuring sustainable development. Recent studies show that excessive financial deepening negatively impacts the economies of developed countries, but is this true for posttransition economies? The aim of this paper is to look into the relationship between financialization and the state of a small and posttransition economy, the Latvian economy. Using a European database and methodological framework we analyze this relationship in Latvia between 1999Q1 and 2017Q4. In our study, we apply the standard Vector Auto-Regressive model (VAR). Our research results do not indicate that financialization causes significant changes in the state of the Latvian economy. The interpretation of this result is related to the degree of financial deepening in Latvia.
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| first_indexed | 2024-03-08T16:41:17Z |
| format | Article |
| id | doaj.art-8f6c9bf589464951be8498f950127c8b |
| institution | Directory Open Access Journal |
| issn | 2345-0282 |
| language | English |
| last_indexed | 2024-03-08T16:41:17Z |
| publishDate | 2022-03-01 |
| publisher | Entrepreneurship and Sustainability Center |
| record_format | Article |
| series | Entrepreneurship and Sustainability Issues |
| spelling | doaj.art-8f6c9bf589464951be8498f950127c8b2024-01-05T10:16:14ZengEntrepreneurship and Sustainability CenterEntrepreneurship and Sustainability Issues2345-02822022-03-019317319710.9770/jesi.2022.9.3(11)Financialization: curse or salvation? The case of Latvia, a small and post-transition economyJoanna Stawskahttps://orcid.org/0000-0001-6863-1210Ramona Rupeika-Apogahttps://orcid.org/0000-0002-3941-0723Maciej Malaczewskihttps://orcid.org/0000-0001-7798-2581Iwona D. Czechowskahttps://orcid.org/0000-0002-8051-5324Fatima Sol Murtahttps://orcid.org/0000-0001-7652-7405The role of financial sector has increased significantly since the 1980s, introducing a new term or phenomenon i.e. the financialization of the economy. There is still some imprecision about the nature and dynamics of financialization, including its impact on the economy. The main task of the financial sector is to allocate funds for its most productive use, while ensuring sustainable development. Recent studies show that excessive financial deepening negatively impacts the economies of developed countries, but is this true for posttransition economies? The aim of this paper is to look into the relationship between financialization and the state of a small and posttransition economy, the Latvian economy. Using a European database and methodological framework we analyze this relationship in Latvia between 1999Q1 and 2017Q4. In our study, we apply the standard Vector Auto-Regressive model (VAR). Our research results do not indicate that financialization causes significant changes in the state of the Latvian economy. The interpretation of this result is related to the degree of financial deepening in Latvia. https://jssidoi.org/jesi/article/943 |
| spellingShingle | Joanna Stawska Ramona Rupeika-Apoga Maciej Malaczewski Iwona D. Czechowska Fatima Sol Murta Financialization: curse or salvation? The case of Latvia, a small and post-transition economy Entrepreneurship and Sustainability Issues |
| title | Financialization: curse or salvation? The case of Latvia, a small and post-transition economy |
| title_full | Financialization: curse or salvation? The case of Latvia, a small and post-transition economy |
| title_fullStr | Financialization: curse or salvation? The case of Latvia, a small and post-transition economy |
| title_full_unstemmed | Financialization: curse or salvation? The case of Latvia, a small and post-transition economy |
| title_short | Financialization: curse or salvation? The case of Latvia, a small and post-transition economy |
| title_sort | financialization curse or salvation the case of latvia a small and post transition economy |
| url | https://jssidoi.org/jesi/article/943 |
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