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Finance–Growth Nexus: Empirical Evidence from South Africa

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  • Ilhan Ozturk
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    Abstract

    In this paper we investigate the long-run relationship between financial development and economic growth in South Africa for the period 1970-2003. The empirical investigation is carried out in a vector autoregression (VAR) framework based on the theory of cointegration and error-correction representation of cointegrated variables. The results of the cointegration analysis provide evidence of the existence of a long-run relationship between financial development and economic growth. The empirical findings in the paper show a two-way causality between financial development and economic growth.

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    Bibliographic Info

    Article provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.

    Volume (Year): (2007)
    Issue (Month): 4 ()
    Pages: 3-17

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    Handle: RePEc:bas:econst:y:2007:i:4:p:3-17

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    Cited by:
    1. Shahbaz, Muhammad & Abosedra, Salah & Sbia, Rashid, 2013. "Energy Consumption, Financial Development and Growth: Evidence from Cointegration with unknown Structural breaks in Lebanon," MPRA Paper 46580, University Library of Munich, Germany.

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