Financial systems and economic growth: empirical evidence from Australia

Sheilla Nyasha and Nicholas Odhiambo

No 18927, Working Papers from University of South Africa, Department of Economics

Abstract: This paper has examined the dynamic impact of both bank- and market-based financialdevelopment on economic growth in Australia ? during the period 1980 to 2012. The studyuses the autoregressive distributed lag bounds (ARDL) testing approach to examine thislinkage. Unlike some previous studies, this study uses financial sector development indices tomeasure both bank- and market-based financial development. These indices were computedusing the method of means-removed average. The empirical results of this study show that whilebank-based financial development has a short-run positive impact on economic growth in Australia,market-based financial development has no significant impact on economic growth, both in the shortrun or in the long run.

Keywords: Australia; Bank-Based Financial Development; Market-Based Financial Development; Economic Growth (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-eff and nep-his
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Financial Systems and Economic Growth: Empirical Evidence from Australia (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:uza:wpaper:18927

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