 South Korea’s finance--growth nexus: evidence from VARX analysis with financial crisis and opennessTakashi Fukuda Macroeconomics and Finance in Emerging Market Economies, 2016, vol. 9, issue 1, 18-33 Abstract: South Korea’s finance--growth nexus is empirically investigated by taking the elements of financial crisis and trade and financial openness through the newly developed approach of vector error-correction models (ECMs) with weakly exogenous I (1) variables (VARX). Considering financial development as a more complex phenomenon, we take into estimation two aspects of financial deepening that are measured by its size (private credit to GDP) and efficiency (private credit to total domestic deposits). The main findings are (1) financial efficiency contributes to accelerating economic growth; (2) the causality between economic growth and financial size is bilateral and negative; and (3) financial crisis is negative to both economic growth and financial development, whereas the growth-promoting effects of trade and financial openness are confirmed. Date: 2016 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:macfem:v:9:y:2016:i:1:p:18-33 Ordering information: This journal article can be ordered from DOI: 10.1080/17520843.2015.1085425 Access Statistics for this article Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals |
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