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

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

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

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Find related papers by JEL classification:
N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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