Bank development, stock market development and economic growth in selected Asian economies
This study examines bank development, stock market development and economic growth nexus in selected Asia economies, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, Hong Kong, Korea and Japan over the period from 1995 to 2018. This study uses a more homogeneous economies to produce...
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| Format: | Article |
| Language: | English English |
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Asian and African Research Centre
2021
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| Online Access: | https://eprints.ums.edu.my/id/eprint/36102/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/36102/2/FULL%20TEXT.pdf |
| _version_ | 1796911814213107712 |
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| author | Wong Hock Tsen |
| author_facet | Wong Hock Tsen |
| author_sort | Wong Hock Tsen |
| collection | UMS |
| description | This study examines bank development, stock market development and economic growth nexus in selected Asia economies, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, Hong Kong, Korea and Japan over the period from 1995 to 2018. This study uses a more homogeneous economies to produce a more economically stylised. The results of the panel vector error-correction approach demonstrate that there is bi-directional causality between real GDP per capita and the ratio of stock market capitalization to GDP. Real GDP per capita is found to Granger cause the ratio of stock market traded to GDP and not vice versa. The use of the ratio of stock market capitalization to GDP for stock market development is found to have significant impact on real GDP per capita than the use of the ratio of stock market traded to GDP on real GDP per capita. In a restricted version of the estimation model, there is bi-directional Granger causality between real GDP per capita and stock market development and bank development, respectively, which bank development is proxied by the ratio of domestic credit to private sector to GDP or the ratio of domestic credit to private sector by banks to GDP and not the ratio of broad money to GDP. Thus, there is some evidence that stock market development stimulates bank development and not vice versa. Stock market development and bank development are not substitute to each other. Stock market development and bank development are appropriate to boost economic growth. |
| first_indexed | 2024-03-06T03:24:20Z |
| format | Article |
| id | ums.eprints-36102 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:24:20Z |
| publishDate | 2021 |
| publisher | Asian and African Research Centre |
| record_format | dspace |
| spelling | ums.eprints-361022023-08-25T01:39:12Z https://eprints.ums.edu.my/id/eprint/36102/ Bank development, stock market development and economic growth in selected Asian economies Wong Hock Tsen HG3810-4000 Foreign exchange. International finance. International monetary system HG4501-6051 Investment, capital formation, speculation This study examines bank development, stock market development and economic growth nexus in selected Asia economies, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, Hong Kong, Korea and Japan over the period from 1995 to 2018. This study uses a more homogeneous economies to produce a more economically stylised. The results of the panel vector error-correction approach demonstrate that there is bi-directional causality between real GDP per capita and the ratio of stock market capitalization to GDP. Real GDP per capita is found to Granger cause the ratio of stock market traded to GDP and not vice versa. The use of the ratio of stock market capitalization to GDP for stock market development is found to have significant impact on real GDP per capita than the use of the ratio of stock market traded to GDP on real GDP per capita. In a restricted version of the estimation model, there is bi-directional Granger causality between real GDP per capita and stock market development and bank development, respectively, which bank development is proxied by the ratio of domestic credit to private sector to GDP or the ratio of domestic credit to private sector by banks to GDP and not the ratio of broad money to GDP. Thus, there is some evidence that stock market development stimulates bank development and not vice versa. Stock market development and bank development are not substitute to each other. Stock market development and bank development are appropriate to boost economic growth. Asian and African Research Centre 2021-05 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/36102/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/36102/2/FULL%20TEXT.pdf Wong Hock Tsen (2021) Bank development, stock market development and economic growth in selected Asian economies. Journal of Asian and African Social Science and Humanities, 7. pp. 71-85. ISSN 24132748 |
| spellingShingle | HG3810-4000 Foreign exchange. International finance. International monetary system HG4501-6051 Investment, capital formation, speculation Wong Hock Tsen Bank development, stock market development and economic growth in selected Asian economies |
| title | Bank development, stock market development and economic growth in selected Asian economies |
| title_full | Bank development, stock market development and economic growth in selected Asian economies |
| title_fullStr | Bank development, stock market development and economic growth in selected Asian economies |
| title_full_unstemmed | Bank development, stock market development and economic growth in selected Asian economies |
| title_short | Bank development, stock market development and economic growth in selected Asian economies |
| title_sort | bank development stock market development and economic growth in selected asian economies |
| topic | HG3810-4000 Foreign exchange. International finance. International monetary system HG4501-6051 Investment, capital formation, speculation |
| url | https://eprints.ums.edu.my/id/eprint/36102/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/36102/2/FULL%20TEXT.pdf |
| work_keys_str_mv | AT wonghocktsen bankdevelopmentstockmarketdevelopmentandeconomicgrowthinselectedasianeconomies |