Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis

Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries

“…As mentioned above, testing for the cross-sectional dependence in a panel causality study is crucial for selecting the appropriate estimator. Following Kònya (2006) and Kar et al (2010), to investigate the existence of crosssectional dependence we employ three different tests: Lagrange multiplier test statistic of Breusch and Pagan (1980) for cross-sectional dependence and two cross-sectional dependence tests statistic of Pesaran (2004), one based on Lagrange multiplier and the other based on the pair-wise correlation coefficients. The Lagrange multiplier test statistic for cross-sectional dependence of Breusch and Pagan (1980) is given by:…”

Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries

“…However, from the 1980s onwards, developing countries have improved the efficiency of their financial markets. Nonetheless, previous studies argue that the relationship between financial development and economic growth in developing countries is inconclusive (Kar et al, 2011).…”

Empirical research on the relationship between rural finance development and rural economic growth: A case study of China from 1978 to 2011

“…César Calderón and Lin Liu (2003) employed the Geweke decomposition test on pooled data to examine the direction of causality between financial development and economic growth, finding that financial development generally leads to economic growth, the Granger causality from financial development to economic growth and the Granger causality from economic growth to financial development coexist. Muhsin Kar, et al (2011) investigated the direction of causality between financial development and economic growth in the Middle East and North African countries, and the empirical results showed that there is no clear consensus on the direction of causality between financial development and economic growth and, the findings are country specific. All these studies, both theoretical and empirical, have tried to strengthen our understanding of the relationship between financial development and economic growth from different levels.…”

“…As to the research on the relationship between financial development and economic growth, many scholars have their own views. Since the pioneering works of Goldsmith (1969) and Shumpeter (1932), and more recently of McKinnon (1973), Demetriades & Hussein (1996), César Calderón & Lin Liu (2003) and Muhsin Kar, et al (2011), the relationship between financial development and economic growth has been extensively studied. Demetriades & Hussein (1996) conducted causality tests between financial development and real GDP by using developed time series techniques, and found that there is a causal relationship between financial development and economic growth.…”