Economic development with finance: studies of emerging economies

This thesis is composed of four original working chapters in terms of four researching purposes to show the macroeconomic development with finance, as well as to consider the comparative proxies of investment and trading sectors in emerging economies. These four original working chapters can be briefly presented as: Theoretical Models, Structural Breaks for NICs of Asia, Causations in Steady State and Dynamic Process in NICs of Asia, and Studies with Countries’ Sizes in BICS1. For different groups of countries in the developing world, it is necessary to mention a fact for empirical studies: that the methodology for estimations should be different, due to many realistic situations and some important ideas from development economists. In the theoretical section, some mathematical models are developed to look at the relationship and effects of finance and development, each of which highlights one special aspect of the interconnections in terms of taxonomy idea. The first empirical part of this thesis investigates the different types of emerging economies of New Industrialized Countries (NICs) in Asia, typically Singapore, Korea, Malaysia and Thailand, and various stages they pass tough in terms of their economic development and financial growth 1960s to 2007. Another different empirical study concentrates on the size effects on the impacts of financial systems to economic development, which involves specific estimations of four specific large emerging economies of Brazil, China, India and South Africa (BICS) with quarterly data from 1995 to 2007. Specially, the study of BICS means the comparison of interrelationship of real sectors and financial sectors on development in terms of specifications of size effects on financial systems. The roles of financial system to economic development are suggested to be investigated in terms of specifications of different emerging economies based on either theoretical or empirical studies of this thesis.