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Financial developments and the rate of growth of output: An alternative approach

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  • Rao, B. Bhaskara
  • Tamazian, Artur
  • Singh, Rup
  • Vadlamannati, Krishna Chaitanya

Abstract

This paper uses a new specification and approach to estimate the effects of financial developments on the steady state rate of growth of output in India, Malaysia, Korea, Thailand and the Philippines for the period 1970 to 2006. These growth effects, though small, are found to be significant except for the Philippines. The trend rate of growth of total factor productivity (TFP), which is due to the omitted but trended variables, is the highest for Malaysia and moderate for India and Thailand. However, TFP is insignificant or negative in the Philippines and Korea.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8605.

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Date of creation: 07 May 2008
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Handle: RePEc:pra:mprapa:8605

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Keywords: Growth Rates. Financial developments; Solow Model; Country Specific Steady State;

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References

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Citations

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Cited by:
  1. Rao, B. Bhaskara & Vadlamannati, Krishna Chaitanya, 2010. "Globalization and growth in the low Income African countries with the extreme bounds analysis," MPRA Paper 21924, University Library of Munich, Germany.
  2. Kumar, Ronald R., 2010. "Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu," MPRA Paper 33221, University Library of Munich, Germany.
  3. Jayaraman, T. K. & Choong, Chee-Keong & Kumar, Ronald, 2011. "Role of Remittances in Economic Development: An Empirical Study of World’s Two Most Remittances Dependent Pacific Island Economies," MPRA Paper 33197, University Library of Munich, Germany.
  4. Rao, B. Bhaskara & Cooray, Arusha, 2010. "Determinants of the long-run growth rate in the South-Asian countries," MPRA Paper 26493, University Library of Munich, Germany.

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