The relationship between financial deepening and economic growth: Bootstrap causality approach for the selected upper middle income countries
This paper investigates the causal relationship between financial deepening and economic growth for fourteen upper middle income countries for the period during 1987-2015. Broad money supply, private credits, financial system deposit liabilities and deposit money banks’ assets are determined as prox...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2018-03-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1322.pdf
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| Summary: | This paper investigates the causal relationship between financial deepening and
economic growth for fourteen upper middle income countries for the period during 1987-2015.
Broad money supply, private credits, financial system deposit liabilities and deposit money banks’
assets are determined as proxies of financial deepening. Kónya (2006) bootstrap panel granger
causality approach is used for this relationship based on Seemingly Unrelated Regression (SUR)
model. Empirical findings indicate that countries can be clustered according to supply-leading
and demand following approach. Besides, there exists evidence for bidirectional causality for
some countries. |
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| ISSN: | 1841-8678 1844-0029 |