Economic growth, development of telecommunications infrastructure, and financial development in Asia, 1991–2012

Rudra P. Pradhan, Mak Arvin and John H. Hall

The Quarterly Review of Economics and Finance, 2016, vol. 59, issue C, 25-38

Abstract: We use principal component analysis (PCA) to construct an index for the development of telecommunications infrastructure (DTI), and an index for financial development. We then assess the causal relationship among DTI, financial development, and economic growth in 21 Asian countries between 1991 and 2012. We study the Asian countries in four regional groups, and use a panel vector auto-regressive (VAR) model to detect the direction of causality among the three variables. Our results reveal that there is Granger-causality among the variables, both in the short run and in the long run, although the exact nature of the results varies by region in Asia.

Keywords: PCA; Panel VAR; Development indices; Economic growth; Asia (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (36)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:59:y:2016:i:c:p:25-38

DOI: 10.1016/j.qref.2015.06.008

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