Growth-finance nexus in oil abundant GCC countries of MENA region
Economic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development conside...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2087646 |
| _version_ | 1818212158104666112 |
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| author | Mohammad Imdadul Haque Bashir Umar Faruk Mohammad Rumzi Tausif |
| author_facet | Mohammad Imdadul Haque Bashir Umar Faruk Mohammad Rumzi Tausif |
| author_sort | Mohammad Imdadul Haque |
| collection | DOAJ |
| description | Economic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development considering institutions for countries with substantial oil rents. The study uses the Pedroni test for cointegration, Granger causality, Ordinary Least Squares (Panel, Fully Modified, and Dynamic) methods to study the relationship on a panel data of six countries from 2000 to 2019. The study proceeds with the hypothesis that economic growth leads to financial development in countries having oil rents. The study finds that economic growth has a significant positive impact on the financial sector development of the GCC countries and not vice versa. The study also reports that poor institutional quality constraints the contribution of oil rents to financial development. The results imply that in countries accruing oil rent, the quality of institutions needs to be improved for furthering the cause of financial development. Although the study advances the empiricism on the link between economic growth and financial development, incorporating institutions and oil rents is the study’s novelty. |
| first_indexed | 2024-12-12T05:43:56Z |
| format | Article |
| id | doaj.art-85c5f766627040099f05905e4a9b918f |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-12T05:43:56Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-85c5f766627040099f05905e4a9b918f2022-12-22T00:35:50ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2087646Growth-finance nexus in oil abundant GCC countries of MENA regionMohammad Imdadul Haque0Bashir Umar Faruk1Mohammad Rumzi Tausif2Department of Economics, Faculty of Social Science, Aligarh Muslim University, Aligarh, IndiaDepartment of Economics, Faculty of Management & Social Sciences, Federal University Gusau, Zamfara State, NigeriaDepartment of Management, College of Business Administration, Prince Sattam Bin Abdulaziz University, Saudi, ArabiaEconomic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development considering institutions for countries with substantial oil rents. The study uses the Pedroni test for cointegration, Granger causality, Ordinary Least Squares (Panel, Fully Modified, and Dynamic) methods to study the relationship on a panel data of six countries from 2000 to 2019. The study proceeds with the hypothesis that economic growth leads to financial development in countries having oil rents. The study finds that economic growth has a significant positive impact on the financial sector development of the GCC countries and not vice versa. The study also reports that poor institutional quality constraints the contribution of oil rents to financial development. The results imply that in countries accruing oil rent, the quality of institutions needs to be improved for furthering the cause of financial development. Although the study advances the empiricism on the link between economic growth and financial development, incorporating institutions and oil rents is the study’s novelty.https://www.tandfonline.com/doi/10.1080/23322039.2022.2087646Economic growthfinancial developmentoil rentsinstitutionsF43G00 |
| spellingShingle | Mohammad Imdadul Haque Bashir Umar Faruk Mohammad Rumzi Tausif Growth-finance nexus in oil abundant GCC countries of MENA region Cogent Economics & Finance Economic growth financial development oil rents institutions F43 G00 |
| title | Growth-finance nexus in oil abundant GCC countries of MENA region |
| title_full | Growth-finance nexus in oil abundant GCC countries of MENA region |
| title_fullStr | Growth-finance nexus in oil abundant GCC countries of MENA region |
| title_full_unstemmed | Growth-finance nexus in oil abundant GCC countries of MENA region |
| title_short | Growth-finance nexus in oil abundant GCC countries of MENA region |
| title_sort | growth finance nexus in oil abundant gcc countries of mena region |
| topic | Economic growth financial development oil rents institutions F43 G00 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2087646 |
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