## Financial Development and Growth in the Caucasus and Central Asia

_IMF Working Papers, July 8, 2022_

## Source details

**Canonical URL:** [Financial Development and Growth in the Caucasus and Central Asia](https://www.imf.org/en/publications/wp/issues/2022/07/08/financial-development-and-growth-in-the-caucasus-and-central-asia-520562)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/07/08/financial-development-and-growth-in-the-caucasus-and-central-asia-520562/index.md)
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## Bibliographic details
- Authors: Tigran Poghosyan
- Published: July 8, 2022
- Series: IMF Working Papers

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### Summary of scope and methods
- Presents stylized facts on financial development in the CCA countries relative to their EM and LIC peers.
- Draws on IMF’s multidimensional index of financial development.
- Uses standard growth regressions to assess how financial development can boost growth in the CCA.

### Key findings on financial development trends
- CCA countries have made progress following the independence in early 1990s.
- Progress was uneven across the CCA, resulting in a divergence of financial development over time and mixed performance relative to EM and LIC peers.
- Financial institutions have progressed the most.
- Financial markets remain underdeveloped in most CCA countries except Kazakhstan.
- Sub-indicator outcomes:
  - Financial access has expanded markedly.
  - Depth of financial intermediation has remained largely shallow.
  - Efficiency of financial intermediation has fluctuated over time.

### Growth implications and quantitative estimates
- Standard growth regressions suggest that CCA countries with relatively lower levels of financial development have scope to boost annual growth rates between 0.5-2.5 percent by reaching the level of financial development of frontier CCA countries.

### Publication metadata and identifiers
- Author: Tigran Poghosyan
- Date: July 8, 2022
- Pages: 25
- Working Paper No.: 2022/134
- Stock No.: WPIEA2022134
- ISBN: 9798400216022
- ISSN: 1018-5941

*Source: Financial Development and Growth in the Caucasus and Central Asia (IMF Working Paper by Tigran Poghosyan, July 8, 2022).*

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2022/07/08/financial-development-and-growth-in-the-caucasus-and-central-asia-520562_