Financial development and economic growth : an empirical evidence from Malaysia

This study examined the relationship between the financial development and economic growth in Malaysia for the period after financial crisis (1997-2004). By using the multivariate cointegration methodology, this study documented the evidence of long run relationships among the economy growth (IPI...

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Main Author:	Low, Siew Phin
Format:	Thesis
Language:	English
Published:	2005
Subjects:	Finance - Malaysia Economic development - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf
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id	my-upm-ir.85024
record_format	uketd_dc
spelling	my-upm-ir.850242021-04-07T03:31:07Z Financial development and economic growth : an empirical evidence from Malaysia 2005 Low, Siew Phin This study examined the relationship between the financial development and economic growth in Malaysia for the period after financial crisis (1997-2004). By using the multivariate cointegration methodology, this study documented the evidence of long run relationships among the economy growth (IPI), financial development (TC) and the interest rate (IR) in Malaysia after the financial crisis. The results of this paper documented that there is a long run relationship among the three variables after evident by the Johansen (1998) and Johansen and Johansen and Juselius (1990) cointegration test. The Vector Error-Correction Model (VECM) was carried out and found that the economy growth (lPI) is Granger caused financial development (TC) in the case of Malaysia in this sample period. At the same time, the results also showing another two single direction causality from financial development to the changes of interest rate and from changes of interest rate to the economy growth. An interesting finding from this study is there is bi-direction causality between the financial growth and the interest rate changes. Finance - Malaysia Economic development - Malaysia 2005 Thesis http://psasir.upm.edu.my/id/eprint/85024/ http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf text en public masters Universiti Putra Malaysia Finance - Malaysia Economic development - Malaysia Tan, Hui Boon
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Tan, Hui Boon
topic	Finance - Malaysia Economic development - Malaysia
spellingShingle	Finance - Malaysia Economic development - Malaysia Low, Siew Phin Financial development and economic growth : an empirical evidence from Malaysia
description	This study examined the relationship between the financial development and economic growth in Malaysia for the period after financial crisis (1997-2004). By using the multivariate cointegration methodology, this study documented the evidence of long run relationships among the economy growth (IPI), financial development (TC) and the interest rate (IR) in Malaysia after the financial crisis. The results of this paper documented that there is a long run relationship among the three variables after evident by the Johansen (1998) and Johansen and Johansen and Juselius (1990) cointegration test. The Vector Error-Correction Model (VECM) was carried out and found that the economy growth (lPI) is Granger caused financial development (TC) in the case of Malaysia in this sample period. At the same time, the results also showing another two single direction causality from financial development to the changes of interest rate and from changes of interest rate to the economy growth. An interesting finding from this study is there is bi-direction causality between the financial growth and the interest rate changes.
format	Thesis
qualification_level	Master's degree
author	Low, Siew Phin
author_facet	Low, Siew Phin
author_sort	Low, Siew Phin
title	Financial development and economic growth : an empirical evidence from Malaysia
title_short	Financial development and economic growth : an empirical evidence from Malaysia
title_full	Financial development and economic growth : an empirical evidence from Malaysia
title_fullStr	Financial development and economic growth : an empirical evidence from Malaysia
title_full_unstemmed	Financial development and economic growth : an empirical evidence from Malaysia
title_sort	financial development and economic growth : an empirical evidence from malaysia
granting_institution	Universiti Putra Malaysia
publishDate	2005
url	http://psasir.upm.edu.my/id/eprint/85024/1/FEP%202005%2014%20IR.pdf
_version_	1747813514257367040

Financial development and economic growth : an empirical evidence from Malaysia

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