Financial development and economic growth in Asian countries: evidence from the DCCE approach
Asia has constantly been in the spotlight regarding economic development as it has been the fastest-growing global region over recent decades. This study investigated the effect of financial development on economic growth in selected Asian countries at various stages of economic development. A recen...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer Science and Business Media Deutschland
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/115744/ http://psasir.upm.edu.my/id/eprint/115744/1/115744.pdf |
| _version_ | 1848866852751540224 |
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| author | Wang, Yujue Mazlan, Nur Syazwani Wan Ngah, Wan Azman Saini Faheem, Muhammad |
| author_facet | Wang, Yujue Mazlan, Nur Syazwani Wan Ngah, Wan Azman Saini Faheem, Muhammad |
| author_sort | Wang, Yujue |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Asia has constantly been in the spotlight regarding economic development as it has been the fastest-growing global region over recent decades. This study investigated the effect of financial development on economic growth in selected Asian countries at various stages of economic development. A recently introduced approach, the Dynamic Common Correlated Effects (DCCE) method, was applied to 12 Asian countries/areas covering 26 years (1995–2020). The 12 countries/areas were divided into three groups based on their current economic development status: underdeveloped, moderately, and highly developed. The study results indicated that the effect of financial development on economic growth varied for countries at different economic levels. The association between financial development and economic growth was strongly negative for underdeveloped countries. However, a positive relationship existed between the sampled moderately and highly developed countries/areas. This situation implied that financial development should not be considered a viable way to boost economic growth for countries with underdeveloped economies. Instead, countries with a higher economic status should priorities financial development to promote economic prosperity effectively. |
| first_indexed | 2025-11-15T14:27:11Z |
| format | Article |
| id | upm-115744 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:27:11Z |
| publishDate | 2024 |
| publisher | Springer Science and Business Media Deutschland |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1157442025-03-13T03:11:31Z http://psasir.upm.edu.my/id/eprint/115744/ Financial development and economic growth in Asian countries: evidence from the DCCE approach Wang, Yujue Mazlan, Nur Syazwani Wan Ngah, Wan Azman Saini Faheem, Muhammad Asia has constantly been in the spotlight regarding economic development as it has been the fastest-growing global region over recent decades. This study investigated the effect of financial development on economic growth in selected Asian countries at various stages of economic development. A recently introduced approach, the Dynamic Common Correlated Effects (DCCE) method, was applied to 12 Asian countries/areas covering 26 years (1995–2020). The 12 countries/areas were divided into three groups based on their current economic development status: underdeveloped, moderately, and highly developed. The study results indicated that the effect of financial development on economic growth varied for countries at different economic levels. The association between financial development and economic growth was strongly negative for underdeveloped countries. However, a positive relationship existed between the sampled moderately and highly developed countries/areas. This situation implied that financial development should not be considered a viable way to boost economic growth for countries with underdeveloped economies. Instead, countries with a higher economic status should priorities financial development to promote economic prosperity effectively. Springer Science and Business Media Deutschland 2024-03-24 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/115744/1/115744.pdf Wang, Yujue and Mazlan, Nur Syazwani and Wan Ngah, Wan Azman Saini and Faheem, Muhammad (2024) Financial development and economic growth in Asian countries: evidence from the DCCE approach. Eurasian Economic Review, 14 (2). pp. 397-420. ISSN 1309-422X; eISSN: 2147-429X https://link.springer.com/article/10.1007/s40822-024-00262-2?error=cookies_not_supported&code=4db93be4-7b02-4314-ab73-fc8e2c47ce0b 10.1007/s40822-024-00262-2 |
| spellingShingle | Wang, Yujue Mazlan, Nur Syazwani Wan Ngah, Wan Azman Saini Faheem, Muhammad Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title | Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title_full | Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title_fullStr | Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title_full_unstemmed | Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title_short | Financial development and economic growth in Asian countries: evidence from the DCCE approach |
| title_sort | financial development and economic growth in asian countries: evidence from the dcce approach |
| url | http://psasir.upm.edu.my/id/eprint/115744/ http://psasir.upm.edu.my/id/eprint/115744/ http://psasir.upm.edu.my/id/eprint/115744/ http://psasir.upm.edu.my/id/eprint/115744/1/115744.pdf |