Relationship of financial development level and sustainable economic growth

The purpose of the study is to identify the factors of financial development that have the greatest impact on the economic growth before COVID-19 pandemic of Russia. The analysis was performed using correlation analysis, construction and interpretation of the regression model, as well as its further verification for autocorrelation and heteroscedasticity. The time horizon covers the period 2007-2019. The article states that the largest negative impact on economic growth before COVID-19 pandemic among the many indicators of financial development has a domestic bank credit, and a significant positive impact - the capitalization of the stock market. Regression analysis confirms the statistical significance of the influence and finds the optimal equilibrium of stimulation real GDP growth (8.5%) via market capitalization growth (100.83%). The article describes the general problems of low financial literacy and weak public confidence, as well as risks arising in the process of globalization.


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Updated on 17th October 2021

Biography

Alexey Mikhaylov

Deputy Director of Monetary Relations Research Center at Financial University under the Government of the Russian Federation, Russia

Alexey MIKHAYLOV, Ph.D. holds a lecturer position in Financial Markets and Banks Department in Financial University under the Government of the Russian Federation, Russia. He is an author of 30 scientific publications and conference papers indexed in SCOPUS and Web of Science, author of more than 80 scientific publications indexed in relevant scientific databases and author of 8 scientific monographs. He also is Head of laboratory of Financial markets and Banks department in Financial University under the Government of the Russian Federation. He specializes in Energy; Economics, Econometrics and Finance; Business, Management and Accounting; Environmental Science; Materials Science; Mathematics; Computer Science; Psychology; Social Sciences; Neuroscience. He has won numerous awards such as Rector's Award 2020 (Financial University). He is currently the Guest Editor in Metals (Q1 journal) and International Journal of Economics, Finance and Management Sciences. He has filed patent: Modified machine learning algorithm based on linear regression for forecasting oil prices, taking into account the influence of macroeconomic indicators. He is a member of Young Scientist Board of Financial University under the Government of the Russian Federation, ACI Russia – Financial Markets Association, Council on professional qualifications at the financial market, Russian Association of Crypto Industry and Blockchain.

ORCID ID: https://orcid.org/0000-0003-2478-0307

 

Editor in journals (Web of Science, Scopus) in 2020-2021:

https://www.mdpi.com/journal/energies/topic_editors 

http://www.revistaorbis.org/equipoeditorial.html 

https://www.mdpi.com/journal/mathematics/special_issues/Mathematical_Statistical_Models_Qualitative_Theories_Economic_Social_Sciences 

https://www.mdpi.com/journal/sustainability/special_issues/economic_renewable 

https://www.mdpi.com/journal/JOItmC/special_issues/financial_open_innovations 

https://www.mdpi.com/journal/economies/special_issues/Emerging_Economics_Sustainable_Growth 

https://www.mdpi.com/journal/energies/special_issues/Sustainable_Renewable_Energy_Trends 

https://www.mdpi.com/si/53873 

 
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