The impact of pension fund assets on economic growth in transition countries, emerging economies, and developed countries

Fisnik Morina; Simon Grima; Fisnik Morina; Simon Grima

doi:10.3934/QFE.2022020

Quantitative Finance and Economics

2022, Volume 6, Issue 3: 459-504. doi: 10.3934/QFE.2022020

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Research article

The impact of pension fund assets on economic growth in transition countries, emerging economies, and developed countries

Fisnik Morina ¹,
Simon Grima ^{2,3
,
,}

1.
Faculty of Business, University "Haxhi Zeka", Peja, 30000, Republic of Kosovo
2.
Department of Insurance and Risk Management, Faculty of Economics, Management and Accountancy, University of Malta, MSD 2080 Msida, Malta
3.
Faculty of Economics, Management and Accountancy, University of Latvia, Riga, LV-1586, Latvia

Received: 12 June 2022 Revised: 03 August 2022 Accepted: 05 August 2022 Published: 12 August 2022
JEL Codes: G20, F43, G23, G11, G15, G18, E31, E22, H63, J11, C33

In this study, the authors aim to analyze the impact of pension asset investments on the economic growth of selected non-OECD countries, taking into account the controlling effect of gross fixed capital formation, domestic credit to the private sector, inflation, public debt and population. To conduct the econometric analysis in this study, the authors relied on secondary data published in the annual reports of the OECD, the World Bank and the IMF. Based on the econometric results of this study, the authors conclude that the investment of pension fund assets has positively impacted the economic growth of selected non-OECD countries (2002–2018). This study is of scientific importance because it provides detailed empirical evidence regarding the investment of pension funds in international financial markets and the effects of these investments on the economic growth of non-OECD countries. Moreover, the authors of this study through this scientific paper provide new scientific evidence to governments and policymakers in these countries on how to design appropriate strategic investment policies so that pension funds invest their pension assets at a safe rate of return from investments to ensure economic growth and efficiency in the capital markets. Given that most non-OECD countries are emerging and transition economies, the importance of this study lies in the fact that the authors, through empirical findings, highlight the importance of pension fund investments in global financial markets and the effects of these investments on the economic growth of these countries.
- economic growth,
- pension funds,
- investments,
- fixed capital,
- loans,
- inflation,
- public debt,
- population
Citation: Fisnik Morina, Simon Grima. The impact of pension fund assets on economic growth in transition countries, emerging economies, and developed countries[J]. Quantitative Finance and Economics, 2022, 6(3): 459-504. doi: 10.3934/QFE.2022020

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Abstract

In this study, the authors aim to analyze the impact of pension asset investments on the economic growth of selected non-OECD countries, taking into account the controlling effect of gross fixed capital formation, domestic credit to the private sector, inflation, public debt and population. To conduct the econometric analysis in this study, the authors relied on secondary data published in the annual reports of the OECD, the World Bank and the IMF. Based on the econometric results of this study, the authors conclude that the investment of pension fund assets has positively impacted the economic growth of selected non-OECD countries (2002–2018). This study is of scientific importance because it provides detailed empirical evidence regarding the investment of pension funds in international financial markets and the effects of these investments on the economic growth of non-OECD countries. Moreover, the authors of this study through this scientific paper provide new scientific evidence to governments and policymakers in these countries on how to design appropriate strategic investment policies so that pension funds invest their pension assets at a safe rate of return from investments to ensure economic growth and efficiency in the capital markets. Given that most non-OECD countries are emerging and transition economies, the importance of this study lies in the fact that the authors, through empirical findings, highlight the importance of pension fund investments in global financial markets and the effects of these investments on the economic growth of these countries.

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