Research On The Long-term Correlation Between Financial,Economic Growth And Macroeconomic Stability In Developing Countries

Thesis paper is devoted to assessing the non-linear forms of links between the indicators of the depth of development of the financial sector,on the one hand,and the rate of economic growth and macroeconomic stability at the level of national economies on the other hand.As indicators of financial depth,the following were used: the domestic credit market,the domestic market for corporate bonds and the market for external corporate borrowings.The results of calculations show that the influence of the depth of each of the three segments of the financial sector on growth can be described by an inverted U-shape,and their influence on the growth volatility can be described by a straight U-shape.This made it possible to identify the trajectories of the movement of countries in the coordinates “growth-stability of growth” while deepening each of the three segments of the financial sector.The optimum depth of the considered segments of the financial market was characterized,characterized by the achievement of the maximum rates of economic growth and their minimum volatility.