Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach
This paper aims to investigate the causal relationship between nonbank financial intermediaries (NBFIs) and per capita economic growth in Malaysia for the period 1974-2004. The study employs the ARDL bounds testing approach to cointegration. The Granger non causality test in a multivariate vector er...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English |
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2009
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/12917/ http://irep.iium.edu.my/12917/1/Conference_Curtin_University_Sarawak.pdf |
| _version_ | 1848777490652200960 |
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| author | Islam, Mohd Aminul Zakaullah, Muhamad Arif |
| author_facet | Islam, Mohd Aminul Zakaullah, Muhamad Arif |
| author_sort | Islam, Mohd Aminul |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper aims to investigate the causal relationship between nonbank financial intermediaries (NBFIs) and per capita economic growth in Malaysia for the period 1974-2004. The study employs the ARDL bounds testing approach to cointegration. The Granger non causality test in a multivariate vector error correction mechanism (VECM) framework is carried out to ascertain the direction of causality among the variables. The test result suggests that nonbank financial intermediaries and economic growth are cointegrated when economic growth is the dependent variable but are not cointegrated when the other variables are treated as the dependent variables. The result shows evidence of a long-run causality running from nonbank financial intermediaries to per capita economic growth, but not vice versa. |
| first_indexed | 2025-11-14T14:46:49Z |
| format | Proceeding Paper |
| id | iium-12917 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:46:49Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-129172012-01-12T08:24:38Z http://irep.iium.edu.my/12917/ Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach Islam, Mohd Aminul Zakaullah, Muhamad Arif HB131 Methodology.Mathematical economics. Quantitative methods This paper aims to investigate the causal relationship between nonbank financial intermediaries (NBFIs) and per capita economic growth in Malaysia for the period 1974-2004. The study employs the ARDL bounds testing approach to cointegration. The Granger non causality test in a multivariate vector error correction mechanism (VECM) framework is carried out to ascertain the direction of causality among the variables. The test result suggests that nonbank financial intermediaries and economic growth are cointegrated when economic growth is the dependent variable but are not cointegrated when the other variables are treated as the dependent variables. The result shows evidence of a long-run causality running from nonbank financial intermediaries to per capita economic growth, but not vice versa. 2009-12-10 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/12917/1/Conference_Curtin_University_Sarawak.pdf Islam, Mohd Aminul and Zakaullah, Muhamad Arif (2009) Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach. In: Curtin International Business Conference (CIBC)-2009, December 10 - 12, 2009, Sarawak, Malaysia. (Unpublished) |
| spellingShingle | HB131 Methodology.Mathematical economics. Quantitative methods Islam, Mohd Aminul Zakaullah, Muhamad Arif Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title | Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title_full | Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title_fullStr | Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title_full_unstemmed | Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title_short | Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach |
| title_sort | cointegration and causality between non-bank financial intermediaries and economic growth in malaysia: an ardl bounds testing approach |
| topic | HB131 Methodology.Mathematical economics. Quantitative methods |
| url | http://irep.iium.edu.my/12917/ http://irep.iium.edu.my/12917/1/Conference_Curtin_University_Sarawak.pdf |