Financial development and economic growth : an empirical evidence from Malaysia
This study examined the relationship between the financial development and economic growth in Malaysia for the period after financial crisis (1997-2004). By using the multivariate cointegration methodology, this study documented the evidence of long run relationships among the economy growth (IPI...
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| Format: | Thesis |
| Language: | English |
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2005
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| Online Access: | http://psasir.upm.edu.my/id/eprint/85024/ http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf |
| _version_ | 1848859971942350848 |
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| author | Low, Siew Phin |
| author_facet | Low, Siew Phin |
| author_sort | Low, Siew Phin |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examined the relationship between the financial development and economic
growth in Malaysia for the period after financial crisis (1997-2004). By using the
multivariate cointegration methodology, this study documented the evidence of long run
relationships among the economy growth (IPI), financial development (TC) and the
interest rate (IR) in Malaysia after the financial crisis. The results of this paper
documented that there is a long run relationship among the three variables after evident
by the Johansen (1998) and Johansen and Johansen and Juselius (1990) cointegration
test. The Vector Error-Correction Model (VECM) was carried out and found that the
economy growth (lPI) is Granger caused financial development (TC) in the case of
Malaysia in this sample period. At the same time, the results also showing another two
single direction causality from financial development to the changes of interest rate and
from changes of interest rate to the economy growth. An interesting finding from this
study is there is bi-direction causality between the financial growth and the interest rate
changes. |
| first_indexed | 2025-11-15T12:37:49Z |
| format | Thesis |
| id | upm-85024 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:37:49Z |
| publishDate | 2005 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-850242021-04-07T03:31:07Z http://psasir.upm.edu.my/id/eprint/85024/ Financial development and economic growth : an empirical evidence from Malaysia Low, Siew Phin This study examined the relationship between the financial development and economic growth in Malaysia for the period after financial crisis (1997-2004). By using the multivariate cointegration methodology, this study documented the evidence of long run relationships among the economy growth (IPI), financial development (TC) and the interest rate (IR) in Malaysia after the financial crisis. The results of this paper documented that there is a long run relationship among the three variables after evident by the Johansen (1998) and Johansen and Johansen and Juselius (1990) cointegration test. The Vector Error-Correction Model (VECM) was carried out and found that the economy growth (lPI) is Granger caused financial development (TC) in the case of Malaysia in this sample period. At the same time, the results also showing another two single direction causality from financial development to the changes of interest rate and from changes of interest rate to the economy growth. An interesting finding from this study is there is bi-direction causality between the financial growth and the interest rate changes. 2005 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf Low, Siew Phin (2005) Financial development and economic growth : an empirical evidence from Malaysia. Masters thesis, Universiti Putra Malaysia. Finance - Malaysia Economic development - Malaysia |
| spellingShingle | Finance - Malaysia Economic development - Malaysia Low, Siew Phin Financial development and economic growth : an empirical evidence from Malaysia |
| title | Financial development and economic growth : an empirical evidence from Malaysia |
| title_full | Financial development and economic growth : an empirical evidence from Malaysia |
| title_fullStr | Financial development and economic growth : an empirical evidence from Malaysia |
| title_full_unstemmed | Financial development and economic growth : an empirical evidence from Malaysia |
| title_short | Financial development and economic growth : an empirical evidence from Malaysia |
| title_sort | financial development and economic growth : an empirical evidence from malaysia |
| topic | Finance - Malaysia Economic development - Malaysia |
| url | http://psasir.upm.edu.my/id/eprint/85024/ http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf |