Financial development and economic growth in Malaysia : the stock market perspective
Understanding the causal relationship between financial development and economic growth is important in enhancing the economy of a nation. Using the autoregressive distributed lag (ARDL) bounds test approach, this study finds that stock market development is cointegrated with economic growth in the...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
Munich Personal RePEc Archive
2005
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/201/ http://ir.unimas.my/id/eprint/201/1/Financial_development_and_economic_growth.pdf |
| _version_ | 1848834497077837824 |
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| author | Chee, Keong Choong Zulkornain, Yusop Siong, Hook Law Liew, Venus Khim Sen |
| author_facet | Chee, Keong Choong Zulkornain, Yusop Siong, Hook Law Liew, Venus Khim Sen |
| author_sort | Chee, Keong Choong |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | Understanding the causal relationship between financial development and economic growth is important in enhancing the economy of a nation. Using the autoregressive distributed lag (ARDL) bounds test approach, this study finds that stock market development is cointegrated with economic growth in the context of Malaysia. Moreover, this test also suggests that stock market development has a significant positive long-run impact on economic growth. Granger-causality test based on vector error correction model (VECM) further reveals that stock market development Granger-causes economic growth. Hence, this study provides robust empirical evidence in favor of finance-led growth hypothesis for the Malaysian economy. |
| first_indexed | 2025-11-15T05:52:55Z |
| format | Working Paper |
| id | unimas-201 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T05:52:55Z |
| publishDate | 2005 |
| publisher | Munich Personal RePEc Archive |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-2012020-08-10T03:45:11Z http://ir.unimas.my/id/eprint/201/ Financial development and economic growth in Malaysia : the stock market perspective Chee, Keong Choong Zulkornain, Yusop Siong, Hook Law Liew, Venus Khim Sen HB Economic Theory HG Finance Understanding the causal relationship between financial development and economic growth is important in enhancing the economy of a nation. Using the autoregressive distributed lag (ARDL) bounds test approach, this study finds that stock market development is cointegrated with economic growth in the context of Malaysia. Moreover, this test also suggests that stock market development has a significant positive long-run impact on economic growth. Granger-causality test based on vector error correction model (VECM) further reveals that stock market development Granger-causes economic growth. Hence, this study provides robust empirical evidence in favor of finance-led growth hypothesis for the Malaysian economy. Munich Personal RePEc Archive 2005 Working Paper NonPeerReviewed text en http://ir.unimas.my/id/eprint/201/1/Financial_development_and_economic_growth.pdf Chee, Keong Choong and Zulkornain, Yusop and Siong, Hook Law and Liew, Venus Khim Sen (2005) Financial development and economic growth in Malaysia : the stock market perspective. [Working Paper] |
| spellingShingle | HB Economic Theory HG Finance Chee, Keong Choong Zulkornain, Yusop Siong, Hook Law Liew, Venus Khim Sen Financial development and economic growth in Malaysia : the stock market perspective |
| title | Financial development and economic growth in Malaysia : the stock market perspective |
| title_full | Financial development and economic growth in Malaysia : the stock market perspective |
| title_fullStr | Financial development and economic growth in Malaysia : the stock market perspective |
| title_full_unstemmed | Financial development and economic growth in Malaysia : the stock market perspective |
| title_short | Financial development and economic growth in Malaysia : the stock market perspective |
| title_sort | financial development and economic growth in malaysia : the stock market perspective |
| topic | HB Economic Theory HG Finance |
| url | http://ir.unimas.my/id/eprint/201/ http://ir.unimas.my/id/eprint/201/1/Financial_development_and_economic_growth.pdf |