Publication:
Finance and output volatility during the global financial crisis
Loading...
Abstracts views
14
Views & Download
4
Date
2024
SDG:
Abstract
This paper assesses the effectiveness of financial depth and financial inclusion in the mitigation of output volatility during the 2008-2010 Global Financial Crisis. The paper also evaluates whether finance is more effective in countries with more developed financial systems, higher levels of economic developments, sounder banking systems, and better political stability. Employing a cross-sectional dataset covering more than 100 countries, our results indicate the ability of finance in subduing output volatility during the crisis. Our evidence is also concrete in suggesting the ability of finance in reducing output volatility in more financially developed, advanced, and politically stable countries. However, the evidence is unclear on whether finance is beneficial for countries characterized by low, intermediate, or high banking stability. In addition to these findings, the preponderance of evidence tends to suggest the better ability of financial usage as compared to financial access in mitigating aggregate fluctuations during the crisis. Finally, our additional analysis reveals that finance functions well in stabilizing output when output volatility is high.
Keywords
Financial depth , Financial inclusion , Output volatility , Moderating factors
Citation
Ibrahim, M. H., Siong, H. L., & Sukmana, R. (2024). Finance and output volatility during the global financial crisis. Muslim Business and Economics Review, 3(1), 1-31.
Publisher
Faculty of Economics and Business, Universitas Islam Internasional Indonesia
DOI
Files
Finance_and_output_volatility_during_the_global_financial_crisis_Mansor H Ibrahim et al.pdf
Size: 554.23 KBFormat: pdf
Views: 0 Downloads: 4
Link Entity
Person Search Results
1 - 1 of 1
Loading...
Person
Mansor H. Ibrahim
mansorhi@inceif.edu.my
Deputy President Academic (DPA)/Dean, School of Graduate and Professional Studies