Influence of financial intermediation institutes on the welfare of the population in the post-Soviet countries: A comparative analysis

Abstract

AbstractThroughout the history of the development of the economy, financial intermediation has performed the functions of reducing transaction costs, having a stimulating effect on the economic system. However, at certain stages, when replacing the real sector of the economy, could cause economic crises, inflating the money supply. The period after the collapse of the USSR became a pivotal experience for all former republics. The destruction of existing economic ties, the reorientation of the economic system from a centrally controlled to a market system, and other unfavorable factors did not promote the dynamic growth of the economy and affected the well-being of the population. This study attempts to determine the impact of financial intermediation institutes on the welfare of the population in the post-Soviet countries. We use the methodology of chrono-discrete monogeographic comparative analysis proposed by Demichev (2019) for legal institutions. In our study, we discuss the change from a planned economy to a market economy. The development of financial intermediation institutions can accelerate the way out of the crisis and stimulate the growth of the population’s well-being, but a balance is needed between the financial and real sectors of the economy.

Keywords

• economic growth
• financial intermediaries
• population welfare
• GDP per capita
• life expectancy at birth
• human capital index