Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies
The main objective of this study is to investigate the dynamic relationships between economic growth and macroeconomic variables, namely financial deepening, exports and investment for the cases of Singapore, South Korea, Taiwan and Thailand. The vector errorcorrection model (VECM) is employed to d...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2007
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| Online Access: | http://psasir.upm.edu.my/id/eprint/670/ http://psasir.upm.edu.my/id/eprint/670/1/bab01.pdf |
| _version_ | 1848838835103858688 |
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| author | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali Baharumshah, Ahmad Zubaidi |
| author_facet | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali Baharumshah, Ahmad Zubaidi |
| author_sort | Tan, Siow Hooi |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The main objective of this study is to investigate the dynamic relationships between economic growth and macroeconomic variables, namely financial deepening, exports and investment for the cases of Singapore, South Korea, Taiwan and Thailand. The vector errorcorrection
model (VECM) is employed to distinguish between shortrun
and long-run causal effects in examining the three led-growth determinants. The out-of-sample dynamics of the system are also picked up through variance decomposition analysis. The empirical results suggest that financial deepening leads to economic growth in South Korea, Singapore and Thailand. In terms of exports, the findings
demonstrate that export-led growth hypothesis is supported for all four Asian economies, namely Singapore, South Korea, Taiwan and Thailand. Apart from export promotion strategies and financial liberalisation, the evidence also shows that economic growth in these four Asian economies is found to be generated by capital formation or investment. |
| first_indexed | 2025-11-15T07:01:52Z |
| format | Article |
| id | upm-670 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:01:52Z |
| publishDate | 2007 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-6702015-07-03T08:22:00Z http://psasir.upm.edu.my/id/eprint/670/ Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali Baharumshah, Ahmad Zubaidi The main objective of this study is to investigate the dynamic relationships between economic growth and macroeconomic variables, namely financial deepening, exports and investment for the cases of Singapore, South Korea, Taiwan and Thailand. The vector errorcorrection model (VECM) is employed to distinguish between shortrun and long-run causal effects in examining the three led-growth determinants. The out-of-sample dynamics of the system are also picked up through variance decomposition analysis. The empirical results suggest that financial deepening leads to economic growth in South Korea, Singapore and Thailand. In terms of exports, the findings demonstrate that export-led growth hypothesis is supported for all four Asian economies, namely Singapore, South Korea, Taiwan and Thailand. Apart from export promotion strategies and financial liberalisation, the evidence also shows that economic growth in these four Asian economies is found to be generated by capital formation or investment. Faculty of Economics and Management, Universiti Putra Malaysia 2007-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/670/1/bab01.pdf Tan, Siow Hooi and Habibullah, Muzafar Shah and Mohamed, Azali and Baharumshah, Ahmad Zubaidi (2007) Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies. International Journal of Economics and Management, 1 (3). pp. 307-335. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol1_no3.htm |
| spellingShingle | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali Baharumshah, Ahmad Zubaidi Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title | Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title_full | Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title_fullStr | Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title_full_unstemmed | Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title_short | Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies |
| title_sort | testing for financial-led, export-led and import-led growth hypotheses on four asian emerging economies |
| url | http://psasir.upm.edu.my/id/eprint/670/ http://psasir.upm.edu.my/id/eprint/670/ http://psasir.upm.edu.my/id/eprint/670/1/bab01.pdf |