Disconnection between the Financial Sphere and the Real Sphere: Theoretical Foundations and Empirical Investigation
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 4
Abstract
Although several studies of theoretical and empirical ones converge on the financial dimension in economic growth, they do not actually provide real common response to the problem of the possible interaction between the real economy and the financial. In fact, the interrelationship between financial development and economic growth arises more acutely and becomes increasingly uncertain to know is that the financial activity that stimulates real or vice versa. Who rightly, Schumpeter argues that: "Financial institutions are required to technological innovation underlying growth" or Robinson says, "Where growth leads; finance follows. »The question posed in this article question then is at the intersection of two areas, namely finance and economics. We will be interested throughout this research to the Tunisian context by using a methodology that is first to apply the test cointegration between the rate of return on equity and the rate of growth in economic activity real. While in second place, we will adopt the technique of error correction (VECM) to be considered in order to understand the dynamics between the variables studied in the short and long term. Finally, the causality test will be the third step of our methodology to detect the direction and magnitude of the causal relationship between the two spheres studied.
Authors and Affiliations
Nizar El Ouni, Faouzi Miled, Manelle Lahdhiri
Keywords
Related Articles
- EP ID EP163164
- DOI 10.6007/IJARAFMS/v4-i4/1284
- Views 111
- Downloads 0
The Auditor's Responsibility for Finding Errors and Fraud from Financial Situations. Case Study
The purpose of this article is to highlight the auditor's responsibility for detecting errors and fraud in the financial statements of an economic entity. The approaches to the concepts of error and fraud are presented t...
Effects of Corporate Governance on Organization’s Performance: Evidence from Karachi Stock Exchange (30 Index)
Corporate governance is one of the most important objectives of the firms because they are based on the top level management performance of the firms. These are related with the organization performance. The organization...
Credit Risk Modeling for Commercial Banks
The aim of this paper is to examine the efficiency of two credit risk modeling (CRM) to predict the credit risk of commercial Iranian banks: (1) Logistic regression model (LRM); (2) Artificial neural networks (ANNs). The...
The Role of Financial Analysis Tools in Granting Loans. Field Study on Banks Operating within Aqaba Special Economic Zone)
This study aimed to demonstrate the role of financial analysis tools in making decisions of granting loans to the clients in Jordanian commercial and Islamic banks operating in Aqaba Special Economic Zone. The study conc...
Increase the Performance of Companies in the Energy Sector by Implementing the Activity-Based Costing