The effect of inflation on financial development : evidence from selected developing countries

• Main Author: Mtepa, Pilly Hamisi
• Format: Thesis
• Language: English; English
• Published: 2016
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/7392/1/s818423_01.pdf; https://etd.uum.edu.my/7392/2/s818423_02.pdf; https://etd.uum.edu.my/7392/

The main objectives of this research is to study the effect of inflation on financial development for 23 selected developing countries worldwide for the period 2000 to 2014. The dependent variable for financial sector performances is measured by credit provided to private sectors, and money supply(M2). Other controllable variables are, inflation which consumer price index, interest rate particular lending interest rate, and GDP per capita which measure economic growth of a particular country. This study employs panel data regression analysis of fixed effects and random effects models. Furthermore, the results show that, two independent variables was found having negative significant relationship with dependent variables, those variables are inflation and interest. While GDP per capita has negative significant relationship with money supply when used as a financial development measure. At the same time GDP per capita has positive significant relationship with credit as a measure of financial development.