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Economic growth and financial development in Asian countries: A bootstrap panel Granger causality analysis

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  • Hsueh, Shun-Jen
  • Hu, Yu-Hau
  • Tu, Chien-Heng
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    Abstract

    This study using Kónya (2006) [Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling 23, 978–992.] method of bootstrap panel Granger causality analysis, which considers the issues of cross-sectional dependency and slope heterogeneity among countries investigated simultaneously, analyzes the causality between financial development and economic growth among ten Asian countries surveyed during period 1980 to 2007. We find that the direction of causality between financial development and economic growth is sensitive to the financial development variables used in the ten Asian countries examined in this work. Moreover, our findings support the supply-leading hypothesis, as many financial development variables lead economic growth in some of the ten Asian countries surveyed, especially in China.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 32 (2013)
    Issue (Month): C ()
    Pages: 294-301

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    Handle: RePEc:eee:ecmode:v:32:y:2013:i:c:p:294-301

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    Web page: http://www.elsevier.com/locate/inca/30411

    Related research

    Keywords: Economic growth; Financial development; Cross-sectional dependency; Slope heterogeneity; Granger causality; Bootstrap;

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    References

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    Cited by:
    1. Salim, Ruhul A. & Shafiei, Sahar, 2014. "Urbanization and renewable and non-renewable energy consumption in OECD countries: An empirical analysis," Economic Modelling, Elsevier, vol. 38(C), pages 581-591.

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