The Relationship between Financial Development and Economic Growth for Developing Countries: Panel Causality Analysis

Filiz Erataş-Sönmez and Yağmur Sağlam

Sosyoekonomi Journal, 2019, issue 27(42)

Abstract: The study aims to examine the relationship between financial development and economic growth in developing countries. In this context, an econometric model has been formed using the financial development index and economic growth variables. Due to the complex nature of the financial system, non-stationary panel data analysis is employed in the empirical model. In the long run, a one-way causality relationship from financial development to economic growth is observed. The findings are in line with the supply-driven approach, which argues for that financial development positively affects economic growth.

Keywords: Financial Development; Financial Development Index; Economic Growth; Panel Data Analysis; Panel Causality Analysis (search for similar items in EconPapers)
JEL-codes: C33 E44 F43 F47 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://dergipark.gov.tr/download/article-file/832966

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sos:sosjrn:190405

Access Statistics for this article

More articles in Sosyoekonomi Journal from Sosyoekonomi Society Cihan St. 27/7 06430 Sihhiye Ankara Turkey.
Bibliographic data for series maintained by Aysen Sivrikaya ().