Finance-growth nexus: evidence based on new measures of finance
This study examines the impact of financial development on economic growth using both the development of banking sector and the development of stock market as indicators of financial development. In order to reduce information loss, new measures of the banking sector and the stock market development...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/56373/ http://psasir.upm.edu.my/id/eprint/56373/1/%282%29-Paper%2002%20Final-IJEM%2011%281%29%2C2017_Finance%20growth%20nexus.pdf |
| _version_ | 1848853065336094720 |
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| author | Ibrahim, Saifuzzaman Abdullahi, Abu Bakar Wan Ngah, Wan Azman Saini Abdul Rahman, Mazlina |
| author_facet | Ibrahim, Saifuzzaman Abdullahi, Abu Bakar Wan Ngah, Wan Azman Saini Abdul Rahman, Mazlina |
| author_sort | Ibrahim, Saifuzzaman |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examines the impact of financial development on economic growth using both the development of banking sector and the development of stock market as indicators of financial development. In order to reduce information loss, new measures of the banking sector and the stock market development are derived from various available measures via principal component analysis. Using the generalized method of moments (GMM) estimation technique on a 1988-2012 sample of 53 countries, the study reveals that the development in the banking sector and the stock market are both important to promote economic growth. |
| first_indexed | 2025-11-15T10:48:03Z |
| format | Article |
| id | upm-56373 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:48:03Z |
| publishDate | 2017 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-563732017-07-31T09:11:47Z http://psasir.upm.edu.my/id/eprint/56373/ Finance-growth nexus: evidence based on new measures of finance Ibrahim, Saifuzzaman Abdullahi, Abu Bakar Wan Ngah, Wan Azman Saini Abdul Rahman, Mazlina This study examines the impact of financial development on economic growth using both the development of banking sector and the development of stock market as indicators of financial development. In order to reduce information loss, new measures of the banking sector and the stock market development are derived from various available measures via principal component analysis. Using the generalized method of moments (GMM) estimation technique on a 1988-2012 sample of 53 countries, the study reveals that the development in the banking sector and the stock market are both important to promote economic growth. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56373/1/%282%29-Paper%2002%20Final-IJEM%2011%281%29%2C2017_Finance%20growth%20nexus.pdf Ibrahim, Saifuzzaman and Abdullahi, Abu Bakar and Wan Ngah, Wan Azman Saini and Abdul Rahman, Mazlina (2017) Finance-growth nexus: evidence based on new measures of finance. International Journal of Economics and Management, 11 (1). pp. 17-29. ISSN 1823-836X http://172.17.31.1/ijem/vol11no1/(2)-Paper%2002%20Final-IJEM%2011(1),2017_Finance%20growth%20nexus.pdf |
| spellingShingle | Ibrahim, Saifuzzaman Abdullahi, Abu Bakar Wan Ngah, Wan Azman Saini Abdul Rahman, Mazlina Finance-growth nexus: evidence based on new measures of finance |
| title | Finance-growth nexus: evidence based on new measures of finance |
| title_full | Finance-growth nexus: evidence based on new measures of finance |
| title_fullStr | Finance-growth nexus: evidence based on new measures of finance |
| title_full_unstemmed | Finance-growth nexus: evidence based on new measures of finance |
| title_short | Finance-growth nexus: evidence based on new measures of finance |
| title_sort | finance-growth nexus: evidence based on new measures of finance |
| url | http://psasir.upm.edu.my/id/eprint/56373/ http://psasir.upm.edu.my/id/eprint/56373/ http://psasir.upm.edu.my/id/eprint/56373/1/%282%29-Paper%2002%20Final-IJEM%2011%281%29%2C2017_Finance%20growth%20nexus.pdf |