Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334815 
Year of Publication: 
2024
Citation: 
[Journal:] Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration [ISSN:] 1804-8048 [Volume:] 32 [Issue:] 1 [Article No.:] 1870 [Year:] 2024 [Pages:] 1-12
Publisher: 
University of Pardubice, Pardubice
Abstract: 
This paper aims to explore the effect of financial innovation on economic growth in 28 transition countries from 2004 to 2021. Financial innovation is categorized based on the structure of the financial system, including commercial banks, non-commercial banks and financial markets. By applying difference GMM estimation, the research demonstrated a significant positive effect of financial innovation in commercial banks and non-commercial banks on economic growth. The results show that a greater number of financial innovations in terms of products and services, processes, technology and function in commercial banks and non-commercial banks would result in higher economic growth in transition countries. In contrast, financial innovation in financial markets indicates significantly negative effects on economic growth. Introducing complex products in stock and bond markets in underdeveloped financial markets probably lead to the volatility and fragility, reducing economic growth. The results of this research contribute to issuing crucial policies that employ financial innovation as an impulse for spurring economic growth in transition countries.
Subjects: 
Economic Growth
Financial Innovation
Commercial Banks Innovation
Non-Commercial Banks Innovation
Financial Markets Innovation
Transition Countries
JEL: 
G10
G20
O11
O30
P20
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.