Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries
This paper examines the causal relationship between financial development and economic growth of the Asian developing countries from a panel data perspective and uses the system GMM technique developed by Arellano & Bover (1995) and Blundell & Bond (1998) and conducts causality testing analy...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Routledge
2006
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| Online Access: | http://psasir.upm.edu.my/id/eprint/18127/ http://psasir.upm.edu.my/id/eprint/18127/1/Does%20financial%20development%20cause%20economic%20growth.pdf |
| _version_ | 1848843426642001920 |
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| author | Habibullah, Muzafar Shah Eng, Yoke Kee |
| author_facet | Habibullah, Muzafar Shah Eng, Yoke Kee |
| author_sort | Habibullah, Muzafar Shah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper examines the causal relationship between financial development and economic growth of the Asian developing countries from a panel data perspective and uses the system GMM technique developed by Arellano & Bover (1995) and Blundell & Bond (1998) and conducts causality testing analysis. The panel data sets involve 13 Asian developing countries: Bangladesh, India, Indonesia, South Korea, Lao PDR, Malaysia, Myanmar, Nepal, Pakistan, Philippine, Singapore, Sri Lanka and Thailand for the period 1990-1998. The result of our study is in agreement with other causality studies by Calderon & Liu (2003), Fase & Abma (2003), and Christopoulos & Tsionas (2004) that financial development promotes growth, thus supporting the old Schumpeterian hypothesis and Patrick's supply-leading' hypothesis. |
| first_indexed | 2025-11-15T08:14:50Z |
| format | Article |
| id | upm-18127 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T08:14:50Z |
| publishDate | 2006 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-181272015-09-17T04:06:43Z http://psasir.upm.edu.my/id/eprint/18127/ Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries Habibullah, Muzafar Shah Eng, Yoke Kee This paper examines the causal relationship between financial development and economic growth of the Asian developing countries from a panel data perspective and uses the system GMM technique developed by Arellano & Bover (1995) and Blundell & Bond (1998) and conducts causality testing analysis. The panel data sets involve 13 Asian developing countries: Bangladesh, India, Indonesia, South Korea, Lao PDR, Malaysia, Myanmar, Nepal, Pakistan, Philippine, Singapore, Sri Lanka and Thailand for the period 1990-1998. The result of our study is in agreement with other causality studies by Calderon & Liu (2003), Fase & Abma (2003), and Christopoulos & Tsionas (2004) that financial development promotes growth, thus supporting the old Schumpeterian hypothesis and Patrick's supply-leading' hypothesis. Routledge 2006 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/18127/1/Does%20financial%20development%20cause%20economic%20growth.pdf Habibullah, Muzafar Shah and Eng, Yoke Kee (2006) Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries. Journal of the Asia Pacific Economy, 11 (4). pp. 377-393. ISSN 1354-7860 http://dx.doi.org/10.1080/13547860600923585 Economic development - Asia Finance - Asia Developing countries - Economic conditions 10.1080/13547860600923585 English |
| spellingShingle | Economic development - Asia Finance - Asia Developing countries - Economic conditions Habibullah, Muzafar Shah Eng, Yoke Kee Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title | Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title_full | Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title_fullStr | Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title_full_unstemmed | Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title_short | Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries |
| title_sort | does financial development cause economic growth? a panel data dynamic analysis for the asian developing countries |
| topic | Economic development - Asia Finance - Asia Developing countries - Economic conditions |
| url | http://psasir.upm.edu.my/id/eprint/18127/ http://psasir.upm.edu.my/id/eprint/18127/ http://psasir.upm.edu.my/id/eprint/18127/ http://psasir.upm.edu.my/id/eprint/18127/1/Does%20financial%20development%20cause%20economic%20growth.pdf |