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Finance and growth in a small open emerging market

  • Law, Siong Hook
  • Azman-Saini, W.N.W.
  • Smith, Peter

This study contributes to the debate on financial development and economic growth in Malaysia using quarterly observations for a sample period from 1980 to 2002. It utilises a battery of financial indicators. Based on multivariate framework which takes real interest rate and capital stock into account, the findings are suggestive that finance does play a crucial role in promoting economic growth. Policymakers should, therefore, focus their attention on the creation and promotion of modern financial institutions including banks, non-banks, and stock markets in delivering both short- and long-run economic benefits.

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File URL: http://mpra.ub.uni-muenchen.de/715/1/MPRA_paper_715.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 715.

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Date of creation: Oct 2006
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Handle: RePEc:pra:mprapa:715
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