1,783
Views
59
CrossRef citations to date
0
Altmetric
Original Articles

Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries

&
Pages 377-393 | Published online: 27 Jun 2007

References

  • Al-Yousif , Y. K. 2002 . Financial development and economic growth: another look at the evidence from developing countries . Review of Financial Economics , 11 : 131 – 150 . [CSA]
  • Anderson , T. W. and Hsiao , C. 1981 . Estimation of dynamic models with error components . Journal of the American Statistical Association , 76 : 589 – 606 . [CROSSREF] [CSA]
  • Arellano , M. and Bond , S. R. 1991 . Some test of specification for panel data: Monte Carlo evidence and application to employment equations . Review of Economic Studies , 58 : 277 – 297 . [CROSSREF] [CSA]
  • Arellano , M. and Bond , S. R. 1998 . Dynamic Panel Data Estimation Using DPD98: A Guide for Users Mimeo
  • Arellano , M. and Bover , O. 1995 . Another look at the instrumental variable estimation of error-component models . Journal of Econometrics , 68 : 5 – 27 . [CROSSREF] [CSA]
  • Arestis , P. and Demetriades , P. 1996 . Finance and growth: institutional considerations and causality , Department of Economics Working Paper No. 5 University of East London .
  • Beck , T. , Levine , R. and Loayza , N. 2000 . Finance and the sources of growth . Journal of Financial Economics , 58 : 261 – 300 . [CROSSREF] [CSA]
  • Blundell , R. W. and Bond , S. R. 1998 . Initial conditions and moment restrictions in dynamic panel data models . Journal of Econometrics , 87 : 29 – 52 . [CROSSREF] [CSA]
  • Bencivenga , V. and Smith , S. 1991 . Financial intermediate and endogenous growth . Review of Economic Studies , 58 ( 2 ) : 195 – 209 . [CROSSREF] [CSA]
  • Blackburn , K. and Hung , V. T. Y. 1998 . A theory of growth, financial development and trade . Economica , 65 : 107 – 124 . [CROSSREF] [CSA]
  • Calderon , C. and Liu , L. 2003 . The direction of causality between financial development and economic growth . Journal of Development Economics , 72 : 321 – 334 . [CROSSREF] [CSA]
  • Chandavarkar , A. G. 1977 . Monetization of developing economies . IMF Staff Papers , 24 : 665 – 721 . [CSA]
  • Christopoulos , D. K. and Tsionas , E. G. 2004 . Financial development and economic growth: evidence from panel unit root and cointegration tests . Journal of Development Economics , 73 : 55 – 74 . [CROSSREF] [CSA]
  • Demetriades , P. O. and Hussein , K. A. 1996 . Does financial development cause economic growth? Time series evidence from 16 countries . Journal of Development Economics , 51 : 387 – 411 . [CROSSREF] [CSA]
  • Diaz-Alejandro , C. 1985 . Good-bye financial repression, hello financial crash . Journal of Development Economics , 19 : 1 – 24 . [CROSSREF] [CSA]
  • Dornbusch , R. and Reynoso , A. 1989 . Financial factors in economic development . American Economic Review, Papers and Proceedings , 79 : 204 – 209 . [CSA]
  • Engle , R. F. and Granger , C. W. J. 1987 . Cointegration and error correction: representation, estimation and testing . Econometrica , 55 : 251 – 276 . [CROSSREF] [CSA]
  • Fase , M. M. G. and Abma , R. C. N. 2003 . Financial environment and economic growth in selected Asian countries . Journal of Asian Economics , 14 : 11 – 21 . [CROSSREF] [CSA]
  • Fry , M. J. 1989 . Financial development: theories and recent experience . Oxford Review of Economic Policy , 5 : 13 – 27 . [CSA]
  • Fry , M. J. 1988 . Money, Interest and Banking in Economic Development , Baltimore, MD : John Hopkins .
  • Goldsmith , R. W. 1969 . Financial Structure and Development , New Haven, CT : Yale University Press .
  • Granger , C. W. J. and Newbold , P. 1974 . Spurious regression in econometrics . Journal of Econometrics , 2 : 111 – 120 . [CROSSREF] [CSA]
  • Greenwood , J. and Jovanovic , B. 1990 . Financial development, growth and the distribution of income . Journal of Political Economy , 98 : 1067 – 1107 . [CROSSREF] [CSA]
  • Gupta , K. L. 1984 . Finance and Economic Growth in Developing Countries , London : Croom Helm .
  • Habibullah , M. S. 1999a . Financial development and economic growth in Asian countries: testing the financial-led growth hypothesis . Savings and Development , 23 : 279 – 290 . [CSA]
  • Habibullah , M. S. 1999b . Divisia Monetary Aggregates and Economic Activities in Asian Developing Economies , Aldershot : Ashgate .
  • Habibullah , M. S. and Smith , P. 1997 . Financial liberalization and economic development: Lessons from ASEAN countries . Journal of Asian Business , 13 ( 3 ) : 69 – 97 . [CSA]
  • Harrison , P. , Sussman , O. and Zeira , J. 1999 . Finance and growth: Theory and new evidence , Federal Reserve Board . Finance and Economics Discussion Paper No. 1999-35
  • Holtz-Eakin , D. , Newey , W. and Rosen , H. S. 1988 . Estimating vector autoregressions with panel data . Econometrica , 56 : 1371 – 1396 . [CROSSREF] [CSA]
  • Holtz-Eakin , D. , Newey , W. and Rosen , H. S. 1989 . The revenue-expenditures nexus: evidence from local government data . International Economic Review , 30 ( 2 ) : 415 – 429 . [CROSSREF] [CSA]
  • International Monetary Fund . International Financial Statistic Yearbook 1979 & 1996 , Washington, DC : International Monetary Fund .
  • Jung , W. S. 1986 . Financial development and economic growth: International evidence . Economic Development and Cultural Change , 34 : 333 – 346 . [CROSSREF] [CSA]
  • King , R. G. and Levine , R. 1993a . Finance and growth: Schumpeter might be right . Quarterly Journal of Economics , 108 : 717 – 738 . [CROSSREF] [CSA]
  • King , R. G. and Levine , R. 1993b . Finance, entrepreneurship, and growth: theory and evidence . Journal of Monetary Economics , 32 : 513 – 542 . [CROSSREF] [CSA]
  • Levine , R. 1991 . Stock markets, growth and tax policy . Journal of Finance , 46 : 1445 – 1465 . [CROSSREF] [CSA]
  • Levine , R. 1997 . Financial development and economic growth: views and agenda . Journal of Economic Literature , 35 : 688 – 726 . [CSA]
  • Levine , R. , Loayza , N. and Beck , T. 2000 . Financial intermediation and growth: causality and causes . Journal of Monetary Economics , 46 : 31 – 77 . [CROSSREF] [CSA]
  • Lewis , W. A. 1955 . Theory of Economic Growth , London : Unwin University Books .
  • Lucas , R. E. 1988 . On the mechanics of economic development . Journal of Monetary Economics , 22 : 3 – 42 . [CROSSREF] [CSA]
  • Luintel , K. B. and Khan , M. 1999 . A quantitative reassessment of the finance-growth nexus: evidence from a multivariate VAR . Journal of Development Economics , 60 : 381 – 405 . [CROSSREF] [CSA]
  • McKinnon , R. I. 1973 . Money and Capital in Economic Development , Washington, DC : Brooking Institution .
  • Murinde , V. and Eng , F. S. H. 1994 . Financial development and economic growth in Singapore: demand-following or supply-leading? . Applied Financial Economics , 4 : 391 – 404 . [CSA]
  • Nickell , S. 1981 . Biases in dynamic models with fixed effects . Econometrica , 49 : 1417 – 1426 . [CROSSREF] [CSA]
  • Nurkse , R. 1962 . Problems of Capital Formation in Underdeveloped Countries , London : Blackwell .
  • Pagano , M. 1993 . Financial market and growth: an overview . European Economic Review , 37 : 613 – 622 . [CROSSREF] [CSA]
  • Patrick , H. T. 1966 . Financial development and economic growth in underdeveloped countries . Economic Development and Cultural Change , 14 : 174 – 189 . [CROSSREF] [CSA]
  • Robinson , J. 1953 . The Rate of Interest and Other Essays , London : Macmillan .
  • Romer , P. 1989 . “ Capital accumulation and the theory of long-run growth ” . In Modern Business Cycle Theory , Edited by: Barro , R. Cambridge : Harvard University Press .
  • Saint-Paul , G. 1992 . Technological choice, financial markets and economic development . European Economic Review , 36 : 763 – 781 . [CROSSREF] [CSA]
  • Schumpeter , J. A. 1934 . The Theory of Economic Development , Oxford : Oxford University Press .
  • Shaw , E. 1973 . Financial Deepening in Economic Development , Oxford : Oxford University Press .
  • Thornton , J. 1994 . Financial deepening and economic growth: evidence from Asian economies . Savings and Development , 18 : 41 – 51 . [CSA]
  • Thornton , J. 1996 . Financial deepening and economic growth in developing economies . Applied Economics Letters , 3 : 243 – 246 . [CSA]
  • World Bank . 1989 . World Development Report 1989 , Washington, DC : The World Bank .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.