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Financial Development and Economic Growth Evidence from Malaysia

For the past decade, a plenty of literature has examined the empirical relationship between economic growth and financial development. An important question of the literature is whether the financial systems influenced growth or vice versa, in the long run. The question of financial development and...

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Main Authors: Mohamad Yazis Ali Basah, Mazlynda Md. Yusuf, Hisham Sabri
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2012
Subjects:
Financial development
Economic growth
Online Access:http://ddms.usim.edu.my/handle/123456789/5339
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spelling my.usim-53392015-03-02T02:38:28Z Financial Development and Economic Growth Evidence from Malaysia Mohamad Yazis Ali Basah Mazlynda Md. Yusuf Hisham Sabri Financial development Economic growth For the past decade, a plenty of literature has examined the empirical relationship between economic growth and financial development. An important question of the literature is whether the financial systems influenced growth or vice versa, in the long run. The question of financial development and economic growth is an egg-and-chicken question. Which one comes first, economic growth or financial development? The study seeks to address the question of what is the relationship between financial developments and economic growth in Malaysia. This research study aims to fill the gap and provide the base for further investigation analysis. In this research the writer use dynamic ordinary least square (DOLS) and investigate the relationship between economic growth and financial developments. From (DOLS) model a further investigation of granger causality are also tested to identify direction of causality. The results indicate thet there is a weak evidence og long run relationship between economic growth and financial developments. There was no causality relationship between capital market and economic growth however, banking development identified as a lead factor towards economic growth in Malaysia. 2012-02-21T08:22:54Z 2012-02-21T08:22:54Z 2007 Article 1823-075X http://ddms.usim.edu.my/handle/123456789/5339 en Vol.4, No.1 2007 Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Financial development
Economic growth
spellingShingle Financial development
Economic growth
Mohamad Yazis Ali Basah
Mazlynda Md. Yusuf
Hisham Sabri
Financial Development and Economic Growth Evidence from Malaysia
description For the past decade, a plenty of literature has examined the empirical relationship between economic growth and financial development. An important question of the literature is whether the financial systems influenced growth or vice versa, in the long run. The question of financial development and economic growth is an egg-and-chicken question. Which one comes first, economic growth or financial development? The study seeks to address the question of what is the relationship between financial developments and economic growth in Malaysia. This research study aims to fill the gap and provide the base for further investigation analysis. In this research the writer use dynamic ordinary least square (DOLS) and investigate the relationship between economic growth and financial developments. From (DOLS) model a further investigation of granger causality are also tested to identify direction of causality. The results indicate thet there is a weak evidence og long run relationship between economic growth and financial developments. There was no causality relationship between capital market and economic growth however, banking development identified as a lead factor towards economic growth in Malaysia.
format Article
author Mohamad Yazis Ali Basah
Mazlynda Md. Yusuf
Hisham Sabri
author_facet Mohamad Yazis Ali Basah
Mazlynda Md. Yusuf
Hisham Sabri
author_sort Mohamad Yazis Ali Basah
title Financial Development and Economic Growth Evidence from Malaysia
title_short Financial Development and Economic Growth Evidence from Malaysia
title_full Financial Development and Economic Growth Evidence from Malaysia
title_fullStr Financial Development and Economic Growth Evidence from Malaysia
title_full_unstemmed Financial Development and Economic Growth Evidence from Malaysia
title_sort financial development and economic growth evidence from malaysia
publisher Universiti Sains Islam Malaysia
publishDate 2012
url http://ddms.usim.edu.my/handle/123456789/5339
_version_ 1645151648435142656
score 13.211869

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