Does financial development cause economic growth? Implication for policy in Korea

Globalisation, Institutional Reforms and Financial Development in East Asian Economies

“…This implies that economic growth may increase the real sector's demand for financial services, thus leading to financial market development. Among the studies that found real income is significant in promoting financial development are Calderon and Liu (2002), Yang and Yi (2008), Colombage (2009) and Bangake and Eggoh (2011).…”

Does financial market liberalization increase the degree of market efficiency? The case of the Athens stock exchange

“…Klein and Olivei (2008) use a cross-section of both developed and developing countries finding a significant effect of open capital accounts to financial depth and economic growth. Yang and Yi (2008) applying tests of superexogeneity to annual Korean data find that financial development control causes economic growth and the opposite is not true. Several studies though find little to no effect of liberalization to growth.…”

The impacts of financial development on growth: A time-varying causality analysis for Turkey

“…While Gupta (1984), Jung (1986), Neusser and Kugler (1998), Demetrias and Hussein (1996), Choe and Moosa (1999), Rousseau and Watchell (2000), Shan et al (2001) have stressed positive effect of financial development on growth in their studies, Shan and Morris (2002), Ang and McKibbin (2007), Odhiambo (2008), Yang and Yi (2008) have argued that economic growth leads to financial development. Arestis and Demetriades (1997), Demetriades and Luintel (1996), Luintel and Khan (1999), and Arestis et al (2001) presented evidence for existence of bidirectional causality.…”