Estimating the permanent growth effects of financial liberalization: The case of Malaysia
AbstractWe argue that the specifications used to estimate the permanent growth effects of reforms in the financial sector are unsatisfactory. Using a modified specification and data for the period 1970 to 2004, we show developments in the financial sector in Malaysia have a small but significant permanent effect on the growth of output. Our results are different from the conclusions in a recent work on this topic.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8278.
Date of creation: 16 Apr 2008
Date of revision:
Growth effects of financial development; Solow model; Malaysia;
Find related papers by JEL classification:
- F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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- William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June.
- Ang, James B. & McKibbin, Warwick J., 2007.
"Financial liberalization, financial sector development and growth: Evidence from Malaysia,"
Journal of Development Economics,
Elsevier, vol. 84(1), pages 215-233, September.
- James B. Ang & Warwick J. McKibbin, 2005. "Financial Liberalization, Financial Sector Development And Growth: Evidence From Malaysia," CAMA Working Papers 2005-05, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
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