Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application
In this study, the cointegration and causality relationships between economic growth and financial development were empirically analyzed using the annual data of BRICS-T countries for the period from 1991 to 2017. Access, depth, and effectiveness data, as well as the variables of Gross Fixed Capital...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Istanbul University
2021-12-01
|
| Series: | Alphanumeric Journal |
| Subjects: | |
| Online Access: |
http://alphanumericjournal.com/media/Issue/volume-9-issue-2-2021/financial-development-and-economic-growth-in-brics-t-countri_17iqlTC.pdf
|
| _version_ | 1797910228967096320 |
|---|---|
| author | Tuncer Gövdeli Tuba Özkan Murat Dilmaç |
| author_facet | Tuncer Gövdeli Tuba Özkan Murat Dilmaç |
| author_sort | Tuncer Gövdeli |
| collection | DOAJ |
| description | In this study, the cointegration and causality relationships between economic growth and financial development were empirically analyzed using the annual data of BRICS-T countries for the period from 1991 to 2017. Access, depth, and effectiveness data, as well as the variables of Gross Fixed Capital Formation, labor force, and economic growth, representing the capital, are among the indicators representing IMF's financial development. In this empirical study, where three different models were used, the long-term relationship of capital, labor force, and one of the three indicators with economic growth was examined. In the results obtained, all of the three models were found to have cointegration relationships, and it was concluded that the variables would act together in the long term. In addition, causality relationships between access, depth and efficiency, and economic growth, which represent financial development, were also investigated in this empirical study. In the findings, it was found that economic growth was the causative of access; and that there was a two-way causality relationship between depth and economic growth, as well as between efficiency and economic growth. In light of these results, it was concluded that there was a two-way causality between financial development and economic growth. |
| first_indexed | 2024-04-10T11:21:01Z |
| format | Article |
| id | doaj.art-43011febea0246048ff91bdae6169b8d |
| institution | Directory Open Access Journal |
| issn | 2148-2225 |
| language | English |
| last_indexed | 2024-04-10T11:21:01Z |
| publishDate | 2021-12-01 |
| publisher | Istanbul University |
| record_format | Article |
| series | Alphanumeric Journal |
| spelling | doaj.art-43011febea0246048ff91bdae6169b8d2023-02-15T16:18:36ZengIstanbul UniversityAlphanumeric Journal2148-22252021-12-0192163178http://dx.doi.org/10.17093/alphanumeric.87541121482225Financial Development and Economic Growth in BRICS-T Countries: An Econometric ApplicationTuncer Gövdeli0Tuba Özkan1Murat Dilmaç2 Atatürk University, Department of Public Finance, Oltu Faculty of Humanities and Social Sciences Atatürk University, Department of Banking and Finance, Oltu Faculty of Humanities and Social Sciences Atatürk University, Department of Banking and Finance, Oltu Faculty of Humanities and Social Sciences In this study, the cointegration and causality relationships between economic growth and financial development were empirically analyzed using the annual data of BRICS-T countries for the period from 1991 to 2017. Access, depth, and effectiveness data, as well as the variables of Gross Fixed Capital Formation, labor force, and economic growth, representing the capital, are among the indicators representing IMF's financial development. In this empirical study, where three different models were used, the long-term relationship of capital, labor force, and one of the three indicators with economic growth was examined. In the results obtained, all of the three models were found to have cointegration relationships, and it was concluded that the variables would act together in the long term. In addition, causality relationships between access, depth and efficiency, and economic growth, which represent financial development, were also investigated in this empirical study. In the findings, it was found that economic growth was the causative of access; and that there was a two-way causality relationship between depth and economic growth, as well as between efficiency and economic growth. In light of these results, it was concluded that there was a two-way causality between financial development and economic growth. http://alphanumericjournal.com/media/Issue/volume-9-issue-2-2021/financial-development-and-economic-growth-in-brics-t-countri_17iqlTC.pdf brics-tdumitrescu and hurlin causality testeconomic growthfinancial development |
| spellingShingle | Tuncer Gövdeli Tuba Özkan Murat Dilmaç Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application Alphanumeric Journal brics-t dumitrescu and hurlin causality test economic growth financial development |
| title | Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application |
| title_full | Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application |
| title_fullStr | Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application |
| title_full_unstemmed | Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application |
| title_short | Financial Development and Economic Growth in BRICS-T Countries: An Econometric Application |
| title_sort | financial development and economic growth in brics t countries an econometric application |
| topic | brics-t dumitrescu and hurlin causality test economic growth financial development |
| url |
http://alphanumericjournal.com/media/Issue/volume-9-issue-2-2021/financial-development-and-economic-growth-in-brics-t-countri_17iqlTC.pdf
|
| work_keys_str_mv | AT tuncergovdeli financialdevelopmentandeconomicgrowthinbricstcountriesaneconometricapplication AT tubaozkan financialdevelopmentandeconomicgrowthinbricstcountriesaneconometricapplication AT muratdilmac financialdevelopmentandeconomicgrowthinbricstcountriesaneconometricapplication |