Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries
Titel:
Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries
Auteur:
Habibullah, Muzafar Shah Eng, Yoke-Kee
Verschenen in:
Journal of the Asia Pacific economy
Paginering:
Jaargang 11 (2006) nr. 4 pagina's 377-393
Jaar:
2006-11
Inhoud:
This paper examines the causal relationship between financial development and economic growth of the Asian developing countries from a panel data perspective and uses the system GMM technique developed by Arellano & Bover (1995) and Blundell & Bond (1998) and conducts causality testing analysis. The panel data sets involve 13 Asian developing countries: Bangladesh, India, Indonesia, South Korea, Lao PDR, Malaysia, Myanmar, Nepal, Pakistan, Philippine, Singapore, Sri Lanka and Thailand for the period 1990-1998. The result of our study is in agreement with other causality studies by Calderon & Liu (2003), Fase & Abma (2003), and Christopoulos & Tsionas (2004) that financial development promotes growth, thus supporting the old Schumpeterian hypothesis and Patrick's 'supply-leading' hypothesis.
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