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Financial Development and Unemployment in Emerging Market Economies

Financial Development and Unemployment in Emerging Market Economies 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Scientific Annals of Economics and Business de Gruyter

Financial Development and Unemployment in Emerging Market Economies

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Publisher
de Gruyter
Copyright
Copyright © 2016 by the
ISSN
2501-3165
eISSN
2501-3165
DOI
10.1515/saeb-2016-0119
Publisher site
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Abstract

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.

Journal

Scientific Annals of Economics and Business – de Gruyter

Published: Jun 1, 2016

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    Cojocaru
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    Caporale