Business regulations and economic growth: What can be explained?

AbstractThis paper investigates business regulations-economic growth nexus in 162 countries over the period 2007-2011. It uses ten indicators of Doing Business and a set of control variables. The results provide a robust link between regulation indices and economic growth except Trading Across Borders and Dealing with Construction Permits indices. Regulation indices and control variables don't matter in term of growth induction in Africa. This finding suggests some policy conclusions that can help poor nations to grow faster

Risque de crédit à travers les cycles d'activité: une analyse sur un panel de banques de dépôt tunisiennes

RésuméLe but de ce travail est d’analyser l’effet des cycles d’activité sur les crédits non performants pour un panel de 10 banques de dépôt tunisiennes durant 1978-2005. Un modèle dynamique a été estimé. Les résultats ont montré qu’une phase de récession aurait tendance à augmenter le stock des crédits non performants des banques. L’environnement macroéconomique exerce un effet négatif sur les banques en période de récession. Ces résultats dégagés ont permis d’analyser l’effet de quatre scénarios sur le niveau des créances improductives. Les « stress tests » ont révélé que la surveillance financière devrait être plus importante durant les phases de récession quand les banques deviennent fragiles. Si la réaction des banques aux chocs macroéconomiques accentue les effets des récessions, il serait approprié de mettre en place des règles qui permettent de limiter la pro cyclicité des activités bancaires.AbstractThe aim of this work is to analyze the effect of business cycles on the non-performing loans for a panel of 10 Tunisian deposit banks during 1978-2005. A dynamic model was estimated. The results showed that a recession tends to increase the stock of non-performing loans in the banks. The macroeconomic environment has a negative effect on banks in times of recession. The results generated were used to analyze the effect of four scenarios on the level of non-performing Loans. The stress tests showed that financial supervision should be higher during downturns when banks become fragile. If the reaction of banks to macroeconomic shocks accentuate the effects of recessions, it would be appropriate to establish rules to limit the pro cyclicality of banking activities

DÉVELOPPEMENT FINANCIER ET ÉCARTS DE REVENUS DES PAYS : UNE ANALYSE EMPIRIQUE SUR DONNÉES DE PANEL

L’objectif de ce travail est d’étudier le rôle du développement du secteur financier dans l’explication des écarts de revenus pour un panel de 98 pays durant la période 1980-2006. Notre contribution a consisté à définir trois clubs de convergence en utilisant le test de convergence en distribution. Nous avons aussi estimé un modèle de panel dynamique inspiré de celui développé par Aghion et al. (2004) pour l’ensemble des pays ainsi que pour les trois sous-ensembles déterminés. Les estimations portant sur l’échantillon total révèlent que la réduction des écarts de revenus découle plus d’un environnement macro-économique stable que d’un secteur financier approfondi. Les estimations portant sur chaque groupe de pays montrent la présence d’un effet non uniforme du développement financier sur les écarts de revenus. Les clubs 1 et 3 affichent une réduction de l’écart de revenus par rapport aux Etats-Unis via un développement financier approfondi. Par contre, la stabilité macroéconomique du club 2 a renforcé le processus de rattrapage en termes de revenu vers les Etats-Unis. Abstract - The aim of this article is to study the role of financial development in the explanation of income inequality for a panel of 98 countries during the period 1980-2006. Our approach consists in defining three convergence clubs by using the distribution convergence test, as well as in estimating a dynamic panel model, inspired by the model developed by Aghion et al. (2004), both for the countries as a whole and for the three groups of countries we have determined. The estimations concerning the total sample reveal that stable macroeconomic environments play a more prominent role in the reduction of income inequality than financial development. The estimations concerning every convergence club show the presence of a non-uniform effect of financial development on income inequality. Clubs 1 and 3 feature income inequality re-duction in relation to the USA through financial development. On the other hand, the macroeconomic stability of club 2 has strengthened the income catch-up process.DÉVELOPPEMENT FINANCIER, DONNÉES DE PANEL, ÉCARTS DE REVENUS

Determinants of foreign direct investment in Tunisia: Empirical assessment based on an application of the autoregressive distributed Lag model

In recent years, the changing economic and political environment in Tunisia led to a renewed interest on the drivers of foreign direct investment, given its potential important gains. In this study, we investigated the impact of various factors over the period 1980-2012. In doing this, three categories of determinants were considered: economic, political and sociocultural variables. Empirical findings drawn from the autoregressive distributed lag bounds testing approach show that variation in foreign direct investment inflow in the short-run and long-run is affected by the majority of variables considered, except exchange rate, urban population and gross domestic savings. As a matter of policy, it is essential that government should continue its efforts to create a macroeconomic environment which is attractive to foreign direct investment

Exploring economic and technological determinants of FinTech startups' success and growth in the United Arab Emirates

In the last few years, the United Arab Emirates (UAE) has emerged as a regional hub serving as an incubator of the FinTech ecosystem, where regulators began implementing policies to encourage the growth of Fintech ventures in 2017. However, detailed empirical evidence concerning the impact of various FinTech-level and ecosystem-specific factors as determinants of FinTech success and survival is yet to be discussed. This paper investigates the underlying factors influencing the success of UAE-based FinTech ventures. Several factors are included in the analysis, controlling for the hedonics of the FinTech, including the business model, availability of and access to finance, and business ecosystem framework. Data are pooled using a semi-structured questionnaire conducted with 32 FinTech founders. A qualitative analysis with an ordered logistic regression model was performed. The findings suggest that the availability of resources, in particular through venture capital, is vital to the success and survival of FinTechs as microbusinesses. However, financial barriers, the regulatory environment, and legal issues have a detrimental impact on facilitating the creation and growth of FinTech ventures. Furthermore, the business model dimensions 'product/service offering' and 'value proposition' tend to influence the success of these ventures. The empirical model's findings will serve as a data-driven tool to help guide finance policymakers in their decisions on how to promote this new sector

Exploring Economic and Technological Determinants of FinTech Startups’ Success and Growth in the United Arab Emirates

In the last few years, the United Arab Emirates (UAE) has emerged as a regional hub serving as an incubator of the FinTech ecosystem, where regulators began implementing policies to encourage the growth of Fintech ventures in 2017. However, detailed empirical evidence concerning the impact of various FinTech-level and ecosystem-specific factors as determinants of FinTech success and survival is yet to be discussed. This paper investigates the underlying factors influencing the success of UAE-based FinTech ventures. Several factors are included in the analysis, controlling for the hedonics of the FinTech, including the business model, availability of and access to finance, and business ecosystem framework. Data are pooled using a semi-structured questionnaire conducted with 32 FinTech founders. A qualitative analysis with an ordered logistic regression model was performed. The findings suggest that the availability of resources, in particular through venture capital, is vital to the success and survival of FinTechs as microbusinesses. However, financial barriers, the regulatory environment, and legal issues have a detrimental impact on facilitating the creation and growth of FinTech ventures. Furthermore, the business model dimensions “product/service offering” and “value proposition” tend to influence the success of these ventures. The empirical model’s findings will serve as a data-driven tool to help guide finance policymakers in their decisions on how to promote this new sector