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Economic growth, development of telecommunications infrastructure, and financial development in Asia, 1991–2012

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  • Pradhan, Rudra P.
  • Arvin, Mak B.
  • Hall, John H.

Abstract

We use principal component analysis (PCA) to construct an index for the development of telecommunications infrastructure (DTI), and an index for financial development. We then assess the causal relationship among DTI, financial development, and economic growth in 21 Asian countries between 1991 and 2012. We study the Asian countries in four regional groups, and use a panel vector auto-regressive (VAR) model to detect the direction of causality among the three variables. Our results reveal that there is Granger-causality among the variables, both in the short run and in the long run, although the exact nature of the results varies by region in Asia.

Suggested Citation

  • Pradhan, Rudra P. & Arvin, Mak B. & Hall, John H., 2016. "Economic growth, development of telecommunications infrastructure, and financial development in Asia, 1991–2012," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 25-38.
  • Handle: RePEc:eee:quaeco:v:59:y:2016:i:c:p:25-38
    DOI: 10.1016/j.qref.2015.06.008
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    Cited by:

    1. Ho, Sin-Yu & Njindan Iyke, Bernard, 2018. "Short- and Long-term Impact of Trade Openness on Financial Development in Sub-Saharan Africa," MPRA Paper 84272, University Library of Munich, Germany.
    2. Emmanuel Carré & Guillaume L'Oeillet, 2018. "The Literature on the Finance–Growth Nexus in the Aftermath of the Financial Crisis: A Review," Post-Print halshs-01746069, HAL.
    3. repec:pal:compes:v:60:y:2018:i:1:d:10.1057_s41294-018-0056-6 is not listed on IDEAS
    4. Rudra P. Pradhan & Mak B. Arvin & Neville R. Norman & Sara E. Bennett, 2016. "Financial depth, internet penetration rates and economic growth: country-panel evidence," Applied Economics, Taylor & Francis Journals, vol. 48(4), pages 331-343, January.
    5. repec:kap:ecopln:v:52:y:2019:i:3:d:10.1007_s10644-018-9227-8 is not listed on IDEAS
    6. repec:eee:energy:v:169:y:2019:i:c:p:1064-1078 is not listed on IDEAS
    7. repec:eee:jebusi:v:96:y:2018:i:c:p:15-41 is not listed on IDEAS

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