An empirical analysis of causality between development of non-bank financial intermediaries and the economic growth in malaysia
This paper utilizes cointegration and error correction mechanism to test the causal relationship between the development of non-bank financial intermediaries (NBFIs) and per capita economic growth in Malaysia over the period 1974-2004. The study employs ARDL bounds testing approach to cointegrati...
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| Format: | Article |
| Language: | English |
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EuroJournals Publishing, Inc
2012
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/25001/ http://irep.iium.edu.my/25001/1/AN_EMPIRICAL_ANALYSIS.pdf |
| _version_ | 1848779391126994944 |
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| author | Islam, Mohd Aminul |
| author_facet | Islam, Mohd Aminul |
| author_sort | Islam, Mohd Aminul |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper utilizes cointegration and error correction mechanism to test the causal
relationship between the development of non-bank financial intermediaries (NBFIs) and
per capita economic growth in Malaysia over the period 1974-2004. The study employs
ARDL bounds testing approach to cointegration to determine the existence of a
cointegrating relationship between non-bank financial intermediaries and economic growth.
The Granger causality test in a multivariate vector error correction mechanism (VECM)
framework is carried out to ascertain the direction of causality. The result suggests that
nonbank financial intermediaries and economic growth are cointegrated when economic
growth is used as the dependent variable but are not cointegrated when the other variables
are treated as the dependent variables. The result also shows evidence of a unique long-run
causality running from nonbank financial intermediaries to per capita economic growth, but
not the vice versa |
| first_indexed | 2025-11-14T15:17:01Z |
| format | Article |
| id | iium-25001 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:17:01Z |
| publishDate | 2012 |
| publisher | EuroJournals Publishing, Inc |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-250012012-08-02T04:50:06Z http://irep.iium.edu.my/25001/ An empirical analysis of causality between development of non-bank financial intermediaries and the economic growth in malaysia Islam, Mohd Aminul HG1501 Banking This paper utilizes cointegration and error correction mechanism to test the causal relationship between the development of non-bank financial intermediaries (NBFIs) and per capita economic growth in Malaysia over the period 1974-2004. The study employs ARDL bounds testing approach to cointegration to determine the existence of a cointegrating relationship between non-bank financial intermediaries and economic growth. The Granger causality test in a multivariate vector error correction mechanism (VECM) framework is carried out to ascertain the direction of causality. The result suggests that nonbank financial intermediaries and economic growth are cointegrated when economic growth is used as the dependent variable but are not cointegrated when the other variables are treated as the dependent variables. The result also shows evidence of a unique long-run causality running from nonbank financial intermediaries to per capita economic growth, but not the vice versa EuroJournals Publishing, Inc 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/25001/1/AN_EMPIRICAL_ANALYSIS.pdf Islam, Mohd Aminul (2012) An empirical analysis of causality between development of non-bank financial intermediaries and the economic growth in malaysia. European Journal of Social Sciences, 30 (4). pp. 654-664. ISSN 1450-2267 http://www.europeanjournalofsocialsciences.com http://www.europeanjournalofsocialsciences.com/ISSUES/EJSS_30_4_15.pdf |
| spellingShingle | HG1501 Banking Islam, Mohd Aminul An empirical analysis of causality between development of non-bank financial intermediaries and the economic growth in malaysia |
| title | An empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| title_full | An empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| title_fullStr | An empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| title_full_unstemmed | An empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| title_short | An empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| title_sort | empirical analysis of causality between development of
non-bank financial intermediaries and the
economic growth in malaysia |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/25001/ http://irep.iium.edu.my/25001/ http://irep.iium.edu.my/25001/ http://irep.iium.edu.my/25001/1/AN_EMPIRICAL_ANALYSIS.pdf |