Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run

The study aims to examine the relationship between the economic growth with bank activity, bank size, market activity, market size, and market efficiency in short-run and long-run. Effort is also taken to determine whether bank-based financial structure is a complement or substitute to market-based...

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Main Author:	Muhamad Shameer Mohammad Fahmi
Format:	Thesis
Language:	English
Published:	2013
Subjects:	HC Economic history and conditions
Online Access:	https://eprints.ums.edu.my/id/eprint/8944/1/mt0000000324.pdf
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id	my-ums-ep.8944
record_format	uketd_dc
spelling	my-ums-ep.89442017-10-26T02:18:01Z Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run 2013 Muhamad Shameer Mohammad Fahmi HC Economic history and conditions The study aims to examine the relationship between the economic growth with bank activity, bank size, market activity, market size, and market efficiency in short-run and long-run. Effort is also taken to determine whether bank-based financial structure is a complement or substitute to market-based financial structure in influencing economic growth. The yearly secondary data ranging from 1980 to 2010 obtained from Bank Negara Reports, Malaysian Financial Report, Department of Statistics Malaysia Report, the Bursa Malaysia Reports and the World Bank Reports are used. The Ordinary Least Square estimation results reveal that Adjusted R-squared is low. However, the estimated Durbin Watson value indicates that the data has an autocorrelation problem. In Unit Root Test results, bank activity, bank size, market activity, and market size have a unit root problem at the level form, but all the variables are found to be integrated at first difference. Next, VAR(p) model determines the optimal lag length of 2. Moreover, co-integration test shows that bank activity, bank size, market activity, market size, and market efficiency are found to be significant in affecting economic growth in long-run. Market efficiency is found to have negative and greater effect on the economic growth while bank size is found to have negative and less effect. Therefore bank based financial structure acts as a substitute to market-based financial structure in affecting economic growth. Finally, the result indicates that there is no short-run relationship between dependent variable and independent variables in the Vector Error Correction model. In conclusion, some recommendations and future study are discussed. 2013 Thesis https://eprints.ums.edu.my/id/eprint/8944/ https://eprints.ums.edu.my/id/eprint/8944/1/mt0000000324.pdf text en public masters University Malaysia Sabah School of Business and Economics
institution	Universiti Malaysia Sabah
collection	UMS Institutional Repository
language	English
topic	HC Economic history and conditions
spellingShingle	HC Economic history and conditions Muhamad Shameer Mohammad Fahmi Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
description	The study aims to examine the relationship between the economic growth with bank activity, bank size, market activity, market size, and market efficiency in short-run and long-run. Effort is also taken to determine whether bank-based financial structure is a complement or substitute to market-based financial structure in influencing economic growth. The yearly secondary data ranging from 1980 to 2010 obtained from Bank Negara Reports, Malaysian Financial Report, Department of Statistics Malaysia Report, the Bursa Malaysia Reports and the World Bank Reports are used. The Ordinary Least Square estimation results reveal that Adjusted R-squared is low. However, the estimated Durbin Watson value indicates that the data has an autocorrelation problem. In Unit Root Test results, bank activity, bank size, market activity, and market size have a unit root problem at the level form, but all the variables are found to be integrated at first difference. Next, VAR(p) model determines the optimal lag length of 2. Moreover, co-integration test shows that bank activity, bank size, market activity, market size, and market efficiency are found to be significant in affecting economic growth in long-run. Market efficiency is found to have negative and greater effect on the economic growth while bank size is found to have negative and less effect. Therefore bank based financial structure acts as a substitute to market-based financial structure in affecting economic growth. Finally, the result indicates that there is no short-run relationship between dependent variable and independent variables in the Vector Error Correction model. In conclusion, some recommendations and future study are discussed.
format	Thesis
qualification_level	Master's degree
author	Muhamad Shameer Mohammad Fahmi
author_facet	Muhamad Shameer Mohammad Fahmi
author_sort	Muhamad Shameer Mohammad Fahmi
title	Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
title_short	Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
title_full	Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
title_fullStr	Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
title_full_unstemmed	Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run
title_sort	financial structure that contributes towards economic growth of malaysia in the short-run and long-run
granting_institution	University Malaysia Sabah
granting_department	School of Business and Economics
publishDate	2013
url	https://eprints.ums.edu.my/id/eprint/8944/1/mt0000000324.pdf
_version_	1747836331830018048

Financial structure that contributes towards economic growth of Malaysia in the short-run and long-run

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