Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries

Habibullah, Muzafar Shah; Eng, Yoke‐Kee

doi:10.1080/13547860600923585

Cited by 92 publications

(68 citation statements)

References 33 publications

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“…Some others studies found some kind of causal relationship in this regard both for short and long term using empirical analyses and approaches. The work relating to determine this issue in developing countries includes studies such as King and Levine (1993), Odedokun (1996), Ahmed and Ansari (1998), Ghali (1999), Xu (2000), Jalilian and Kirkpatrick (2002), Suleiman and Abu-Qaun (2005), and Habibullah and Eng (2006). While the empirical researches which oppose the notion that that economic growth causes financial development comprised work done by Agbetsiafa (2003), Waqabaca (2004), Odhiambo (2007) and others mostly relying on results coming from less developed countries of sub Saharan Africa.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Growth, Financial Depth and Lending Rate Nexus: A Case of Oil Dependant Economy

Nasir¹,

Ali²,

Khokhar³

2014

International Journal of Financial Research

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This research empirically investigates the long and short run causal relationships between economic growth, financial depth and lending rate in the unique economic setup of Saudi Arabia where 92% of total GDP comes from oil exports. Study uses two proxies for financial depth namely liquid liability indicator and banks claim to the private sector to GDP ratio, while economic growth is measured by real GDP per capita. This study intends to get answers for such questions as, if financial depth effects or causes economic growth in an oil based economy, and does lending rate have any relationship with financial depth or economic growth. Using the Johansens co-integration, Granger causality and Vector Error Correction Model (VECM) the study finds a single co-integrated equation which establishes a long run relationship among the variables. Finding suggests that financial depth causes lending rate which is in contradiction with most of the available literature; the study tries to explain this type of causality under the present circumstances. Furthermore no short term significant relationship exists among the variables as reflected by the results of the Wald Test, that is due to the unique political and economic setup under consideration.

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Section: Literature Reviewmentioning

confidence: 99%

Economic Growth, Financial Depth and Lending Rate Nexus: A Case of Oil Dependant Economy

Nasir¹,

Ali²,

Khokhar³

2014

International Journal of Financial Research

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“…The results provided support for Patrick's (1966) hypothesis of stage development. Habibullah and Eng (2006) tested causality on 13 Asian developing countries. The result is consistent with findings by Calderon & Liu (2003); Fase&Abma (2003) and Christopoulos & Tsionas (2003).…”

Section: Research In Applied Economicsmentioning

confidence: 99%

The Relationship between Financial Development and Economic Growth in Africa

Musamali

Nyamongo²,

Moyi³

2014

RAE

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This study examines the relationship between financial development and economic growth. It presents evidence on a cross section of 50 African countries whose data is available for the period 1980-2008. Two proxies of financial development are employed: the ratio of credit to the private sector to total GDP and the ratio of broad money (M2) to total GDP. We establish a positive relationship between financial development and economic growth. However, we find that the relationship between private sector credit and economic growth is much stronger than the relationship between money supply and economic growth. In addition, we find that the relationship between financial sector development and economic growth is bi-directional. The results suggest that both the financial sector and the real sector are important in influencing Africa's current and future growth trajectory.

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“…Al reducir asimetrías de información entre prestamistas y prestatarios, el sistema financiero canaliza los recursos a los sectores más productivos, lo que alienta la eficiencia económica y el bienestar social (Greenwood y Jovanovic, 1990;Habibullah y Eng, 2006). La tercera función es la movilización y la agrupación de ahorradores que quieren invertir sus recursos.…”

Section: R E V I S T a C E P A L 1 1 1 • D I C I E M B R E 2 0 1 3 Fiunclassified

Financiamiento de la banca comercial para las micro, pequeñas y medianas empresas en México

Padilla-Pérez

Ontañon

2013

Revista De La CEPAL

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Financiamiento de la banca comercial para las micro, pequeñas y medianas empresas en México Ramón Padilla-Pérez y Rodrigo Fenton Ontañon RESUMENEl objetivo de este artículo es estudiar la estrategia de otorgamiento de créditos a las mipymes por parte de la banca comercial en México, así como examinar los factores que la incentivan o la obstaculizan. Para ello, en 2011 se efectuó una encuesta detallada entre los bancos comerciales que operan en el país. En esta se evidencia que existe un creciente interés por ampliar el crédito a las mipymes, pese a que estos créditos representan todavía una pequeña proporción de la cartera total. Se detectaron tres diferentes modelos de negocios, con divergencias importantes en las estrategias seguidas para atender a este segmento de empresas. Los factores que constituyen una mayor barrera para la oferta de crédito son la presencia de información insuficiente, fallas en el sistema de protección de acreedores, la informalidad, y las transformaciones históricas y rupturas que la banca comercial ha experimentado en las últimas tres décadas. CLASIFICACIÓN JEL G21, L29, O16 PALABRAS CLAVEPequeñas empresas, empresas medianas, financiamiento de empresas, créditos comerciales, bancarios, empresas comerciales, encuestas México AUTORES

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Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries

Cited by 92 publications

References 33 publications

Economic Growth, Financial Depth and Lending Rate Nexus: A Case of Oil Dependant Economy

Economic Growth, Financial Depth and Lending Rate Nexus: A Case of Oil Dependant Economy

The Relationship between Financial Development and Economic Growth in Africa

Financiamiento de la banca comercial para las micro, pequeñas y medianas empresas en México

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