The first of its kind… A scientific study at the International University for Science and Technology on the relationship between financial development and the outputs of scientific research in the field of finance
The quantity and quality of research related to finance are key factors in driving financial innovation, which in turn enhances economic growth, according to what researchers from the International University for Science and Technology indicated in a scientific study that is the first of its kind in terms of studying the relationship between financial development, research production in finance, and economic growth in 15 countries in the Middle East and North Africa (MENA) region.
This study was conducted during the period from 2000 to 2017, and used advanced modeling techniques to analyze how financial research interacts with economic frameworks to promote sustainable growth, and achieved remarkable accuracy in its economic modeling using an innovative methodology based on the General System of Two Methods (GMS) with the Runge-Kutta numerical method.
The scientific study showed a strong positive relationship between the production of financial research and overall economic progress, highlighting the importance of fostering a research environment geared towards sustainable development.
One of the key points reached was the beneficial interrelationship between financial development and research production in finance, as the study showed that these two factors work together to promote economic growth, suggesting that investing in high-quality financial research can lead to stronger financial systems and increased economic resilience. Furthermore, the research revealed a subtle relationship between financial stability and research quality.
Although high-quality research may initially challenge stability, it ultimately contributes to long-term financial stability and economic growth, a finding that underscores the need to prioritize high-quality financial research, even when there are concerns about its immediate effects on financial systems.
The researchers recommend targeted investment in financial research and encourage collaboration between academics, industry experts, and government agencies by creating an environment that supports high-quality research and financial innovation.
In conclusion, this study is a strong reminder to MENA countries to recognize the critical role of finance research in shaping their economic strategies, through commitment to investing in research and fostering cross-sector partnerships, policymakers can leverage financial innovation to drive sustainable economic growth.
This study was funded by the International University for Science and Technology, and published in Cogent Economics & Finance, a Scopus-indexed journal, Q2, published by Taylor & Francis