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Journal of Finance & Economics Research - Volume 7, Issue 1 2022
By Md. Sazib Miyan, Md. Firoze Miah
10.20547/jfer2207103
Keywords: Personal finance, financial development, Granger causality, co-integration, GLM, Bangladesh.
The purpose of the study is investigated the efficiency of personal finance in terms of financial gain and advancement. Despite the fact that there is an abundance of research on personal finance literacy in the literature, there is a scarcity of research on the effect of personal finance on financial growth in the literature, particularly in Bangladesh. With the passage of time, the amount of national income and savings in the country has been steadily increasing throughout time. Despite the fact that its frequency has fluctuated, there have been no official studies conducted on the usefulness of personal finance in terms of financial development. Time-series data over the period 2001-2019 of Bangladesh has been employed in this article. By using Generalized Linear Model (GLM), this study observes the effects of personal finance on financial development. This study observes positive effect of personal finance on financial development. Also, this study also finds that market capitalization and trade openness positively as well as inflation and interest rate negatively effects on development of Bangladesh's financial system. Likewise, uni-direction causal relationship observes between the issues by employing Toda-Yamamoto Granger Causality. Similarly, Co-integration results suggest that long-run relationship among the variables. The observations of this paper suggest that policy makers and government of the country should make effort to ensure secure individual savings, which will increase personal finance in market, which in turn will increase financial development as well.
Submission Date: 5 Oct, 2021 Reviews Completed: 23 Dec, 2021Acceptance Date: 30 Dec, 2021 Publication Date: 4 Jan, 2022