Economic growth and financial development in Asian countries: A bootstrap panel Granger causality analysis

Economic Modelling

Volumn 32, Issue 1, 2013, Pages 294-301

  Hsueh, Shun Jen ^a   Hu, Yu Hau ^a   Tu, Chien Heng ^b  

^a CHENG SHIU UNIVERSITY   (Taiwan)

^b NATIONAL KAOHSIUNG UNIVERSITY OF APPLIED SCIENCES   (Taiwan)

Author keywords

Bootstrap; Cross sectional dependency; Economic growth; F43; Financial development; Granger causality; O10; O11; Slope heterogeneity

Indexed keywords

EID: 84875063270     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econmod.2013.02.027     Document Type: Article

References (57)

1. Arestit P., Demetriades P. Financial development and economic growth: assessing the evidence. The Economic Journal 1997, 107(442):783-799.
2. Atje R., Jovanovic B. Stock markets and development. European Economic Review 1993, 37:632-640.
3. Bai J., Kao C. On the estimation inference of a panel cointegration model with cross-sectional dependence. Contributions to Economic Analysis 2006, 3-30. Elsevier. B. Baltagi (Ed.).
4. Bekaert G., Harvey C.R. Foreign speculators and emerging equity markets. Journal of Finance 2000, 55:565-614.
5. Bekaert G., Harvey C.R., Lundblad C. Emerging equity markets and economic development. Journal of Development Economics 2001, 66:465-504.
6. Bekaert G., Harvey C.R., Lumsdaine R.L. Dating the integration of world equity markets. Journal of Financial Economics 2002, 65:203-247.
7. Bekaert G., Harvey C.R., Lundblad C. Does financial liberalization spur growth?. Journal of Financial Economics 2005, 77:3-55.
8. Berthelemy J.C., Varoudakis A. Thresholds in financial development and economic growth. Manchester School of Economic and Social studies 1995, 63:70-84.
9. Breitung J. A parametric approach to the estimation of cointegration vectors in panel data. Econometric Reviews 2005, 24(2):151-173.
10. Breusch T., Pagan A. The Lagrange multiplier test and its application to model specifications in econometrics. Reviews of Economics Studies 1980, 47:239-253.
11. Calderon C., Liu L. The direction of causality between financial development and economic growth. Journal of Development Economics 2003, 72:321-334.
12. Christopoulos D.K., Tsionas E.G. Financial development and economic growth: evidence from unit root and cointegration. Journal of Development Economics 2004, 73:55-74.
13. Demetriades Panicos O., Hussein Khaled A. Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of Development Economics 1996, 51(2):387-411. (Elsevier, December).
14. Dorrucci E., Meyer-Cirkel A., Santabarbara D. Domestic Financial Development in Emerging Economies Evidence and Implications. Occasional paper Series, No: 102 2009, European Central Bank, (http://ssrn.com/abstract_id=1325243).
15. Fase M.M.G., Abma R.C.N. Financial environment and economic growth in selected Asian countries. Journal of Asian Economics 2003, 14:11-21.
16. Goldsmith R.W. Financial structure and development 1969, Yale University Press, New Haven, CT.
17. Granger C.W.J. Some aspects of causal relationships. Journal of Econometrics 2003, 112:69-71.
18. Gregorio J.D., Guidotti P.E. Financial development and economic growth. World Development 1995, 23(3):433-448.
19. Grossman G., Helpman E. Innovation and Growth in the Global Economy 1991, MIT Press, Cambridge MA.
20. Habibullah M.S., Eng Y.K. Does financial development cause economic growth? A panel data dynamic analysis for the Asian developing countries. Journal of the Asia Pacific Economy 2006, 11(4):377-393.
21. Hartmann P., Heider F., Papaioannou E., Duca M.L. The Role of Financial Markets and Innovation in Productivity and Growth in Europe. Occasional Paper Series No: 72 2007, European Central Bank, (http://www.ecb.int/pub/pdf/scpops/ecbocp72.pdf, 03.012. 2008).
22. Hsu J.M., Liu W.C. The role of financial development during economic growth-the empirical study on Taiwan and Korea. NPF Research Report 2002, 91:58-68.
23. Hurlin C. What would Nelson and Plosser find had they used panel unit root tests?. Applied Economics 2008, 42(12):1515-1531.
24. Hwang J.T., Lin J.H. The Asian financial crisis and the roles of the International Monetary Fund. Issues & Studies 2007, 46:50-62.
25. Kar M., Nazlioglu S., Agir H. Financial development and economic growth nexus in the MENA countries: bootstrap panel Granger causality analysis. Economic Modelling 2011, volume 28(Issues 1-2):685-693.
26. Kemal A.R., Qayyum A., Nadim Hanif M. Financial development and economic growth: evidence from a heterogeneous panel of high income countries. The Lahore Journal of Economics 2007, vol. 12(No. 1).
27. Khan A.R. Employment Policies for Poverty Reduction. Issues in Employment and Poverty Discussion Paper 1 2001, Recovery and Reconstruction Department, ILO, Geneva.
28. Khan Mohsin S., Senhadji Abdelhak S. Financial Development and Economic Growth: a review and new evidence. Journal of African Economies 2003, 12(Suppl. 2):89-110.
29. King R.G., Levine R. Finance and growth: Schumpeter might be right?. Quarterly Journal of Economics 1993, 108(3):717-737.
30. King R.G., Levine R. Finance, entrepreneurship, and growth: theory and evidence. Journal of Monetary Economics 1993, 32(3):513-542.
31. Kónya L. Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling 2006, 23:978-992.
32. Levine R. Financial development and economic growth: views and agenda. Journal of Economic Literature 1997, 35:688-726.
33. Levine R. Finance and Growth: Theory and Evidence. Handbook of Economic Growth 1 2005, Elsevier. P. Aghion, S. Durlauf (Eds.).
34. Levine R., Zervos S. Stock markets, banks, and economic growth. American Economic Review 1998, 88:537-558.
35. Liang Q., Teng J.Z. Financial development and economic growth: evidence from China. China Economic Review 2006, 17:395-411.
36. Lucas R.E. On the mechanics of economic development. Journal of Monetary Economics 1988, 22(3):42.
37. Luintel K.B., Khan M. A quantitative reassessment of the finance growth nexus: evidence from a multivariate VAR. Journal of Development Economics 1999, 60:381-405.
38. Lynch D. Measuring financial sector development: a study of selected Asia-Pacific countries. The Developing Economies 1996, 34(1):3-33.
39. Murinde V., Eng F.S.H. Financial restructuring and economic growth in Singapore. Savings and Development 1994, 18(2):225-246.
40. Murinde V., Eng F.S.H. Financial development and economic growth in Singapore: demand following or supply leading?. Applied Financial Economics 1994, 4(6):391-404.
41. Odedokun M.O. Causalities between financial aggregates and economic activities in Nigeria: the results from Granger's test. Savings and Development 1989, 23(1):101-111.
42. Odhiambo N.M. Finance-growth-poverty nexus in South Africa: a dynamic causality linkage. Journal of Socio-Economics 2009, 38(2):320-325.
43. Pagano M. Financial markets and growth: an overview. European Economic Review 1993, 37:613-622.
44. Pesaran M.H. General Diagnostic Tests for Cross Section Dependence in Panels. CESifo working paper 1229; IZA discussion paper 1240 2004.
45. Pesaran M.H. Estimation and inference in large heterogeneous panel with a multifactor error structure. Econometrica 2006, 74(4):967-1012.
46. Pesaran M.H., Yamagata T. Testing slope homogeneity in large panels. Journal of Econometrics 2008, 142:50-93.
47. Pesaran M.H., Ullah A., Yamagata T. A bias-adjusted LM test of error cross-section independence. The Econometrics Journal 2008, 11:105-127.
48. Patrick H.T. Financial development and economic growth in underdeveloped countries. Economic Development and Cultural Change 1966, 14:174-189.
49. Rebelo S. Long run policy analysis and long run growth. Journal of Political Economy 1991, 99:500-521.
50. Robinson Joan The Generalization of the General Theory. The Rate of Interest and Other Essays 1952, Macmillan, London.
51. Romer P. Increasing Returns and Long Run Growth. Journal of Political Economy 1986, 1002-1037.
52. Rousseau Peter L., Wachtel P. Economic Growth and Financial Depth: Is the Relationship Extinct Already?. UNU/WIDER Conference Paper, July 1-2, 2005 2005.
53. Sinha D., Macri J. Financial development and economic growth: the case for eight Asian countries. Economia Internazionale 2001, 55:219-237.
54. Swamy P.A.V.B. Efficient inference in a random coefficient regression model. Econometrica 1970, 38:311-323.
55. Tekin R.B. Economic growth, exports and foreign direct investment in Least Developed Countries: a panel Granger causality analysis. Economic Modelling 2012, 29:868-878.
56. Wood A. Financial development and economic growth in Barbados: causal evidence. Savings and Development 1993, 17(4):379-390.
57. Zellner A. An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. Journal of the American Statistical Association 1962, 57:348-368.