Financial development and economic growth : evidence from panel data

This study explores the importance of financial development towards economic growth. This study examines the relationship between financial development and economic growth in OECD countries. Real GDP per capita is used to measure economic growth. To measure financial development three different vari...

Full description

Saved in:

Bibliographic Details
Main Author:	Yugindri, Baskaran
Format:	Thesis
Language:	eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7804/1/Depositpermission_s822982.pdf https://etd.uum.edu.my/7804/2/s822982_01.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.7804
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Nayan, Sabri
topic	HG Finance
spellingShingle	HG Finance Yugindri, Baskaran Financial development and economic growth : evidence from panel data
description	This study explores the importance of financial development towards economic growth. This study examines the relationship between financial development and economic growth in OECD countries. Real GDP per capita is used to measure economic growth. To measure financial development three different variable is chosen namely liquid liabilities (M2), credit to private sector and Financial Technology (Fintech). Besides that, there are also few other variables that had been used a control variable which is Energy Consumption, Capital Formation and Net Trade. Panel Ordinary Least Square and Granger Causality had been employed to determine the relationship between the financial development and economic growth. Based on the result, we can conclude that financial development significantly impacts the economic growth of a country. However, from the empirical result the credit provided to private sector and Fintech have negatively impacted the economic growth. Despite, liquid liabilities has a positive relationship between economic growth. Besides that, from the result the capital formation and net trade had a positive relationship toward economic growth. Furthermore, the energy consumption has a negative impact on economic growth. From the empirical result we can conclude that there is a bidirectional causality flow between credit to private sector and GDP. besides that, GDP has a Uni-directional relationship flow from GDP to Liquid liabilities and Fintech. In general, a well-developed financial system is an essential element in boosting economy.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Yugindri, Baskaran
author_facet	Yugindri, Baskaran
author_sort	Yugindri, Baskaran
title	Financial development and economic growth : evidence from panel data
title_short	Financial development and economic growth : evidence from panel data
title_full	Financial development and economic growth : evidence from panel data
title_fullStr	Financial development and economic growth : evidence from panel data
title_full_unstemmed	Financial development and economic growth : evidence from panel data
title_sort	financial development and economic growth : evidence from panel data
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2018
url	https://etd.uum.edu.my/7804/1/Depositpermission_s822982.pdf https://etd.uum.edu.my/7804/2/s822982_01.pdf
_version_	1747828267494146048
spelling	my-uum-etd.78042022-10-11T02:50:14Z Financial development and economic growth : evidence from panel data 2018 Yugindri, Baskaran Nayan, Sabri School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance This study explores the importance of financial development towards economic growth. This study examines the relationship between financial development and economic growth in OECD countries. Real GDP per capita is used to measure economic growth. To measure financial development three different variable is chosen namely liquid liabilities (M2), credit to private sector and Financial Technology (Fintech). Besides that, there are also few other variables that had been used a control variable which is Energy Consumption, Capital Formation and Net Trade. Panel Ordinary Least Square and Granger Causality had been employed to determine the relationship between the financial development and economic growth. Based on the result, we can conclude that financial development significantly impacts the economic growth of a country. However, from the empirical result the credit provided to private sector and Fintech have negatively impacted the economic growth. Despite, liquid liabilities has a positive relationship between economic growth. Besides that, from the result the capital formation and net trade had a positive relationship toward economic growth. Furthermore, the energy consumption has a negative impact on economic growth. From the empirical result we can conclude that there is a bidirectional causality flow between credit to private sector and GDP. besides that, GDP has a Uni-directional relationship flow from GDP to Liquid liabilities and Fintech. In general, a well-developed financial system is an essential element in boosting economy. 2018 Thesis https://etd.uum.edu.my/7804/ https://etd.uum.edu.my/7804/1/Depositpermission_s822982.pdf text eng staffonly https://etd.uum.edu.my/7804/2/s822982_01.pdf text eng public https://sierra.uum.edu.my/record=b1699277~S1 masters masters Universiti Utara Malaysia Al-IrianI, M. (2005). Energy–GDP relationship revisited: An example from GCC countries using panel causality. Energy Policy, 3342–3350. King, R., & Levine, R. (1993). Finance and Growth: Schumpeter Might be Right. The Quarterly Journal of Economics, 717-737. Li, Y., Spigt, R., & Swinkels, L. (2017). The impact of Fintech start-ups on. Financial Innovation, 3-26. Madsen, J., Islam, M., & Doucouliagos, H. (2018). Inequality, financial development and economic growth in the OECD, 1870–2011. European Economic Review, 605–624. Nyasha, S., & Odhiambo, N. (2015). The Impact of Banks and Stock Market Development on Economic Growth in South Africa: an ARDL-bounds Testing Approach. 93-108. Ryu, H.-S. (2018). Understanding Benefit and Risk Framework of Fintech Adoption: Comparison of Early Adopters and Late Adopters. Paper presented in Hawaii International Conference on System Sciences. Siddique, H. M., Usman, S., & Ishaq, J. (2018). Financial Development and Economic Growth: The Role of Energy Consumption. Journal of Quantitative Methods, 43-55. Acaravci, S. K., Ozturk, I., & Acaravci, A. (2009). Financial development and economic growth:literature survey and empirical evidence from sub-Saharan African countries. South African Journal of Economic and Management Sciences, 11-27. Adeyeye, P. O., Fapetu, O., Aluko, O. A., & Migiro, S. O. (2015). Does Supply- Leading Hypothesis hold in a Developing Economy?A Nigerian Focus. Procedia Economics and Finance 30, 30 – 37. Afonso, A., & Blanco-Arana, M. (2018). Financial Development and Economic Growth: A Study for OECD Countries in the context of Crisis. REM Working Paper 046-2018. Arestis, P., Luintel, A., & Luintel, K. (2010). Financial structure and economic growth: evidence from time series analyses. Applied Financial Economics, 1479-1492. Asteriou, D., & Spanos, K. (2018). The Relationship between Financial Development and Economic Growth during the recent Crisis: Evidence from the EU. Accepted Manuscript Finance Research Letters. Best, A., & Francis, B. (2015). Is Financial Development Supply-leading or demand following? Time-series Evidence from Barbados. Carribbean Centre for Money and Finance Conference paper. Calderon, C., & Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of Development Economics, 321–334. Chow, G. (1993). Capital Formation and Economic Growth in China. The Quarterly Journal of Economics, 809–842. Christiansen, H. (November, 2001). Electronic Finance: Economics and Institutional Factors. Retrieved from http://www.oecd.org/finance/financialmarkets/2676135.pdf Durusu-Ciftci , D., & Yetkiner, S. H. (2015). Financial Development and Economic Growth: Some Theory and More Evidence. Accepted manuscript for Journal of Policy Modeling. Goldsmith, R. W. (1969). Financial structure and development as a subject for international comparative study. New Haven, CT: Yale University Press. Gujarati, D. (2003). Basic Econometrics. New York: McGraw-Hill Higher Education. Hossain, S. (2011). Panel estimation for CO2 emissions, energy consumption, economic growth,trade openness and urbanization of newly industrialized countries. Energy Policy, 6991–6999. Huchet‐Bourdon, M., Mouël, C. L., & Vijil, M. (2018). The relationship between trade openness andeconomic growth: Some new insights on theopenness measurement issue. Wiley The world Ecomony , 59-76. Kindleberger, C. (1978). A History of financial Crisis. Hoboken:Wiley. Klein, M., & Olivei, G. (2008). Capital account liberalization, financial depth,and economic growth. Journal of International Money and Finance, 861–875. Levine, R., & King, R. G. (1993). Finance and Growth: Schumpeter Might be Right. The Quarterly Journal of Economics, 717-737. Madsen.J.B, I. a. (2018). Inequality, financial development and economic growth in the OECD, 1870–2011. European Economic Review, 605-624. Masini, M. (1975). Financial Deepening in Economic Development by EDWARD S. SHAW. Giordano Dell-Amore Foundation. Masoud, N., & Hardaker, G. (2012). The impact of financial development on economic growth: Empirical analysis of emerging market countries. Studies in Economics and Finance, 148-173. McKinnon, R. (1974). Money and Capital in Economic Development. The American Political Science Review, 1822-1824. Menyah.K. (2007). Financial Development,Trade openness and economic growth in african countries. Economic Modelling, 386-394. Mirchandani, A. (Vol. 3, No. 1, 2013). Analysis of Macroeconomic Determinants of. International Journal of Economics and Financial Issues, 172-179. Murinde, V., & Eng, F. (1994). Financial development and economic growth in Singapore: demand-following or supply-leading? Applied Financial Economics, 391-404. Nyasha, S., & Odhiambo, N. (2015). Economic growth and market-based financial systems: a review. Studies in Economics and Finance, 235-255. Odhiambo, N. M. (2007). Supply-leading versus Demand-following Hypothesis: Empirical Evidence from Three SSA Countries. Published by Blackwell Publishing Ltd. Rafiq, S., & Salim, R. (2011). The linkage between energy consumption and income in six emerging economies of Asia An empirical analysis. International Journal of Emerging Markets, 50-73. Raihan, A. (2001). The State of E-Finance in Developing Countries: Bangladesh Perspective. Improving Competitiveness of SMEs in Developing Countries: Role of Finance, including E-finance to Enhance Enterprise Development. Bangladesh. Sehrawat, M., & Giri, A. (2015). The role of financial development in economic growth: empirical evidence from Indian states. International Journal of Emerging Markets, 765-780. Shamim, F. (2007). The ICT environment, financial sector and economic growth: a cross‐country analysis. Journal of Economic Studies, 352-370. Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in Fintech innovation in Germany. Information & Computer Security, 109-128.

Financial development and economic growth : evidence from panel data

Similar Items