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Financial Development And Unemployment In Emerging Market Economies

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  • Yilmaz BAYAR

Abstract

Financial sector has experienced significant expansion together with accelerating financial globalization in recent years and had important positive and negative economic implications for all the economies. This study investigates the interaction among unemployment, financial development and domestic investment in 16 emerging market economies during 2001-2014 period using panel data analysis. We found that there was long relationship among the variables and domestic investment had negative impact on the unemployment, while financial development had no significant impact on the unemployment. Furthermore, there was unidirectional causality from development of financial sector to unemployment. JEL Codes - C33, E24, E44

Suggested Citation

  • Yilmaz BAYAR, 2016. "Financial Development And Unemployment In Emerging Market Economies," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(2), pages 237-245, July.
    • Handle: RePEc:aic:saebjn:v:63:y:2016:i:2:p:237-245:n:34
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    References listed on IDEAS

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    1. Frank Iyekoretin Ogbeide & Hilary Kanwanye & Sunday Kadiri, 2016. "Revisiting the Determinants of Unemployment in Nigeria: Do Resource Dependence and Financial Development Matter?," African Development Review, African Development Bank, vol. 28(4), pages 430-443, December.
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    6. Frank Iyekoretin Ogbeide & Hillary Kanwanye & Sunday Kadiri, 2015. "The Determinants of Unemployment and the Question of Inclusive Growth in Nigeria: Do Resource Dependence, Government Expenditure and Financial Development Matter?," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 49-64.
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    Cited by:

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    2. S. Nyasha & M.T. Musakwa & N.M. Odhiambo, 2021. "The Impact Of Stock Market Development On Unemployment: Empirical Evidence From South Africa," Working Papers AESRI-2021-22, African Economic and Social Research Institute (AESRI), revised Jul 2021.
    3. S. Nyasha & M.T. Musakwa & N.M. Odhiambo, 2022. "Bank Development and Unemployment in Kenya: An Empirical Investigation," Working Papers AESRI-2022-18, African Economic and Social Research Institute (AESRI), revised Jun 2022.
    4. Gbolahan Olowu & Godwin Olasehinde-Williams & Murad Bein, 2019. "Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(5), pages 223-231.

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    More about this item

    Keywords

    financial development; gross capital formation; unemployment; panel data analysis;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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