| Abstract [eng] |
Financialisation, i.e., the process by which financial markets and their partіϲіpants gain more influence over the functioning of enterprises/companies and the framework of the financial system, changes the functioning of the economic system, both at the macro- and microeconomic level. There is no doubt that financialisation impacts economic growth. Still, rеѕеarch does not substantiate the heterogeneity of financialisation effects and does not provide a comprehensive analysis of the sources of heterogeneity. In most cases, rеѕеarchers provide only theoretical insights into what may lead to different effects of financialisation on economic growth. Thus, the aim of the research – to study the phenomenon of financialisation and the sources of its heterogeneous impact on economic growth, to develop a model for assessing the heterogeneous impact of financialisation on long-run economic growth, and to empirically test it in relation to various countries of the world. This study empirically examines whether institutional quality and economic development intermediate the relationship between financialisation and economic growth using a panel of 96 countries over the period of 1996-2017 and least squares dummy variables (LSDV) estimator. It was found that the impact of financialisation on economic growth differs across countries and that institutional quality and economic development are the sources of the heterogeneous impact of financialisation on economic growth. |
