Causal relationship between financial depth and economic growth: evidence from Asia-Pacific Countries

Nur Fatin Najwa M. Sani, Fathiyah Ismail and Wan Mansor Mahmood

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the causality between financial depth and the economic performance of five selected large Asia-Pacific Countries consisting of China, India, Korea, Australia and New Zealand. Using pooled OLS regression for 20 year period annual data (1991-2012), the study finds bi-directional long-run causality between financial depth and economic growth. The study also find that ancillary variables such as inflation and investment share significant and positively caused economic growth. However, when financial depth become dependent variable only investment share provide clear relationship. The important implication for policy maker is that they should either improved financial markets or economic activities for future development and sustainability.

Keywords: : Economic growth; financial depth; investment share; inflation; Asia- Pacific Countries (search for similar items in EconPapers)
JEL-codes: G1 G15 O16 O2 (search for similar items in EconPapers)
Date: 2014-09-25
New Economics Papers: this item is included in nep-fdg and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/62188/1/MPRA_paper_62188.pdf original version (application/pdf)

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:pra:mprapa:62188

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().