IDEAS home Printed from https://ideas.repec.org/a/bau/ijabms/v5y2020i1id232.html

The Relationship between Financial Markets and Economic Growth: The Case Study of Georgia

Author

Listed:
  • Naib Alakbarov
  • Rakhshada Murshudova

Abstract

The aim of the study is to investigate the relationship between financial markets and economic growth in Georgia. In this study, causality relationship between financial development indices representing financial markets and gross domestic product representing economic growth was investigated by using annual data for the period of 1995-2017. According to the results of the Breitung and Candelon (2006) Frequency Domain Causality Test, it was observed that there was no causal relationship between the development in the financial markets and economic growth, but the economic growth positively affected the productivity in the financial markets.

Suggested Citation

  • Naib Alakbarov & Rakhshada Murshudova, 2020. "The Relationship between Financial Markets and Economic Growth: The Case Study of Georgia," International Journal of Applied Business and Management Studies, BAUDER Press, vol. 5(1), pages 10-18, March.
    • Handle: RePEc:bau:ijabms:v:5:y:2020:i:1:id:232
    DOI: 10.68099/ijabms.2020.232
    as

    Download full text from publisher

    File URL: https://journal.bauderpress.org.tr/index.php/ijabms/article/view/232
    File Function: Abstract page
    Download Restriction: no
    File URL: https://journal.bauderpress.org.tr/index.php/ijabms/article/download/232/162
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.68099/ijabms.2020.232?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas Barnebeck Andersen & Finn Tarp, 2003. "Financial liberalization, financial development and economic growth in LDCs," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 189-209.
    2. Roger Atindehou & Jean Pierre Gueyie & Edoh Kossi Amenounve, 2005. "Financial intermediation and economic growth: evidence from Western Africa," Applied Financial Economics, Taylor & Francis Journals, vol. 15(11), pages 777-790.
    3. Stern, Nicholas, 1989. "The Economics of Development: A Survey," Economic Journal, Royal Economic Society, vol. 99(397), pages 597-685, September.
    4. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    5. Breitung, Jorg & Candelon, Bertrand, 2006. "Testing for short- and long-run causality: A frequency-domain approach," Journal of Econometrics, Elsevier, vol. 132(2), pages 363-378, June.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janice Tieguhong Puatwoe & Serge Mandiefe Piabuo, 2017. "Financial sector development and economic growth: evidence from Cameroon," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-18, December.
    2. Sheilla Nyasha & Nicholas M. Odhiambo, 2015. "The Impact of Banks and Stock Market Development on Economic Growth in South Africa: an ARDL-bounds Testing Approach," Contemporary Economics, Vizja University, vol. 9(1), March.
    3. Gries, Thomas & Kraft, Manfred & Meierrieks, Daniel, 2009. "Linkages Between Financial Deepening, Trade Openness, and Economic Development: Causality Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 37(12), pages 1849-1860, December.
    4. Zhang, Bo & Zhou, Peng, 2021. "Financial development and economic growth in a microfounded small open economy model," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    5. Mina Baliamoune-Lutz, 2010. "Financial Development and Income in Developing Countries," ICER Working Papers 09-2010, ICER - International Centre for Economic Research.
    6. Aqil Khan & Mumtaz Ahmed & Salma Bibi, 2019. "Financial development and economic growth nexus for Pakistan: a revisit using maximum entropy bootstrap approach," Empirical Economics, Springer, vol. 57(4), pages 1157-1169, October.
    7. Adeniyi, Oluwatosin & Oyinlola, Abimbola & Omisakin, Olusegun & Egwaikhide, Festus O., 2015. "Financial development and economic growth in Nigeria: Evidence from threshold modelling," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 11-21.
    8. António Afonso & M. Carmen Blanco-Arana, 2018. "Financial Development and Economic Growth: A Study for OECD Countries in the Context of Crisis," Working Papers REM 2018/46, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    9. Gehringer, Agnieszka, 2013. "Financial liberalization, financial development and productivity growth: An overview," Economics Discussion Papers 2013-46, Kiel Institute for the World Economy.
    10. Alexandr Akimov & Brian Dollery, 2009. "Financial System Development in Indonesia and South Korea in 1980s and early 1990s: Policies and Outcomes," Discussion Papers in Finance finance:200906, Griffith University, Department of Accounting, Finance and Economics.
    11. S. Nyasha & N. M. Odhiambo, 2016. "The Impact of Bank-Based and Market-Based Financial Development on Economic Growth: Time-Series Evidence From the United Kingdom," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(2), pages 389-410, June.
    12. Brou Emmanuel AKA & Yao Silvère KONAN, 2023. "Frequency domain causality analysis of financial development and economic growth in Côte d’Ivoire," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(635), S), pages 163-182, Summer.
    13. Kirikkaleli, Dervis & Athari, Seyed Alireza, 2020. "Time-frequency co-movements between bank credit supply and economic growth in an emerging market: Does the bank ownership structure matter?," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    14. PINSHI, Christian P., 2020. "On the causal nature between financial development and economic growth in the Democratic Republic of the Congo: Is it supply leading or demand following?," MPRA Paper 101837, University Library of Munich, Germany, revised 14 Jul 2020.
    15. Hamdi Becha & Maha Kalai & Kamel Helali, 2023. "Smooth transition regression model relating inflation to economic growth in Tunisia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-26, December.
    16. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar & Hall, John H. & Norman, Neville R., 2017. "Finance and growth: Evidence from the ARF countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 136-148.
    17. Christian Pinshi & Anselme M Kabeya, 2020. "Financial development and Economic growth in the Democratic Republic of the Congo : Supply leading or Demand following?," Working Papers hal-02886686, HAL.
    18. Dervis Kirikkaleli & Andrew Adewale Alola, 2023. "The regime switching evidence of financial-economic-political risk in Turkey," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3747-3762, August.
    19. Abdulkadir Rafindadi & Zarinah Yusof, 2015. "Do the dynamics of financial development spur economic growth in Nigeria’s contemporal growth struggle? A fact beyond the figures," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 365-384, January.
    20. Hicham AYAD & Mostéfa BELMOKADDEM, 2017. "Financial development, trade openness and economic growth in MENA countries: TYDL panel causality approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(610), S), pages 233-246, Spring.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bau:ijabms:v:5:y:2020:i:1:id:232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: BAUDER Press editorial office (email available below). General contact details of provider: https://journal.bauderpress.org.tr/index.php/ijabms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.