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Journals / Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi / 2019 / Cilt: 33 - Sayı: 2

The Finance-Growth Nexus in the High Performance Asian Economies: A Panel Bootstrap Causality Analysis

Dilek DURUSU ÇİFTÇİ
Pages
495–514
Publication Date
2019-03-29
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The panel findings indicate that the while there is two-way causal relationship between stock market development and economic growth, the causality exist only one-way from growth to credit market development.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Öz This study examines the causal link between financial development and economic growth in the High Performance Asian Economies (HPAEs).
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Key Findings & Data:The newly developed panel causality testing approach of Emirmahmutoglu and Kose (2011) which controls for both cross-sectional dependency and heterogeneity across countries is applied to the 7 HPAEs for the period 1989-2017.
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Conclusion & Impact:The panel findings indicate that the while there is two-way causal relationship between stock market development and economic growth, the causality exist only one-way from growth to credit market development.
🔬Design:Research Article
📍Scope:2011 Verileri
⚙️Variables:Anahtar Kelimeler Economic growth · Financial development · Cross-section dependency

Özet

Öz This study examines the causal link between financial development and economic growth in the High Performance Asian Economies (HPAEs). The newly developed panel causality testing approach of Emirmahmutoglu and Kose (2011) which controls for both cross-sectional dependency and heterogeneity across countries is applied to the 7 HPAEs for the period 1989-2017. In order to capture the relationship between real sector development and both credit and stock market development, two different indicators are used. The panel findings indicate that the while there is two-way causal relationship between stock market development and economic growth, the causality exist only one-way from growth to credit market development. This implies that the demand-following hypothesis is supported in the panel of HPAEs. Moreover, the results show that the existence and direction of causality differ among the different HPAEs. These various evidences lead to country specific policy implications and recommendations.

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Cite This Article

ÇİFTÇİ, D. D. (2019). The Finance-Growth Nexus in the High Performance Asian Economies: A Panel Bootstrap Causality Analysis. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, Cilt: 33 - Sayı: 2, 495–514. https://ajindex.com/articles/18744

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