The financial sector development programme is based on financial inclusion, depth, and stability criteria. What variable should be considered as dependant and what as independent? What to do if Data relating to non bank financial institution such as pension fund and insurances are not revealed by the national statistic? What about Remittance transaction?
I have got a background in financial management and accounting. I came across some econometrics models like Autoregressive Distributed Lag model (ARDL) test and Error Corretion Model (ECM) but I am not familiar with them. I would like to know if regression models like ANOVA, OLS, mutliple regression may help to find the impact of the programme on national savings.
Thank you for your help
Credit pvt/gdp captures, and total assets in the financial system/GDP are among other variables. MODEL = FD f(S)
Dear Aime,
Traditional models would require regression estimates. An OLS model would make savings dependent on those financial sector development variables. When savings data became available for China, the Nobel laureate economists Franco Modigliani did an article titled "The Chinese Savings Puzzle and the Life-cycle Hypothesis" in the Journal of Economic Literature, Volume 42, (March 2004), pp. 145-170. I make that reference because it represents the most serious level at which these OLS models can be elevated.
If the saving function is not significant, you can embed it in a system of equations model for the financial sector. The best example of such a model is by the Federal Reserve Bank Board.
Good Luck in your Research.
I think if you have the opportunity to acquire a data set (such as this http://ukcatalogue.oup.com/product/9780198736912.do) where paragraph data available different financial institutions and it would be better to make a multivariate regression analysis using panel data.
I have a colleague who specializes in financial econometric analysis, Emma Iglesias (https://www.researchgate.net/profile/Emma_Iglesias2).
I hope that helps!!! Regards!!!
You can take a look at the first chapter essentially of our joint research at
planningcommission.nic.in./reports/sereport/ser/scoiwel.pdf especially Chapter 1 which had been mainly put together by Prof. Anjan Chakraborty of Calcutta University for a good discussion on Financial Deepening measures. SKM