Financial structure and economic growth: evidence from time series analyses

Arestis, Philip; Luintel, Ambika D.; Luintel, Kul B.

doi:10.1080/09603107.2010.508716

Cited by 39 publications

(39 citation statements)

References 35 publications

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“…These findings complement recent research that suggests that not just the size, but also the structure of financial systems may matter for growth (Fecht et al, 2008;Luintel et al, 2008;Ergungor, 2008;Arestis et al, 2010;Demirguc-Kunt et al, 2012). Further empirical research may be directed towards disentangling the mechanisms through which the two different types of financial institutions impact real sector outcomes.…”

Section: Discussionsupporting

confidence: 77%

“…Thus, the evolution of financial systems towards a more market-based structure does have an impact on real sector outcomes. These findings complement recent research that argues that not just the size, but also the structure of financial systems may matter for growth (Fecht, Huang and Martin, 2008;Luintel, Khan, Arestis and Theodoridis, 2008;Ergungor, 2008;Arestis, Luintel and Luintel, 2010;Demirguc-Kunt, Feyen and Levine, 2012).…”

Section: Introductionsupporting

confidence: 86%

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Finance and growth: Time series evidence on causality

Peia

Roszbach²

2015

Journal of Financial Stability

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Please cite this article as: Oana Peia, Kasper Roszbach, Finance and growth: time series evidence on causality, Journal of Financial Stability (2014), http://dx. AbstractThis paper re-examines the empirical relationship between financial and economic development while (i) taking into account their dynamics and (ii) differentiating between stock market and banking sector development. We study the cointegration and causality between finance and growth for 22 advanced economies. Our time series analysis suggests that causality patterns depend on whether countries' financial development stems from the stock market or the banking sector. We show that stock market development tends to cause economic development, while a reverse causality is mostly present between banking sector development and output growth.These findings indicate that the direction of causality between finance and growth is likely to be different at high levels of development. AbstractThis paper re-examines the empirical relationship between financial and economic development while (i) taking into account their dynamics and (ii) differentiating between stock market and banking sector development. We study the cointegration and causality between finance and growth for 22 advanced economies. Our time series analysis suggests that causality patterns depend on whether countries' financial development stems from the stock market or the banking sector. We show that stock market development tends to cause economic development, while a reverse causality is mostly present between banking sector development and output growth.These findings indicate that the direction of causality between finance and growth is likely to be different at high levels of development.

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Section: Discussionsupporting

confidence: 77%

Section: Introductionsupporting

confidence: 86%

Finance and growth: Time series evidence on causality

Peia

Roszbach²

2015

Journal of Financial Stability

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“…It was also observed that more efficient banking sectors accelerated growth suggesting unidirectional causality flowing from financial development to economic growth and not vice versa. Studies by Arestis et al (2010) for Greece, India, South Korea, the Philippines, South Africa and Taiwan have observed that financial structure influences economic growth. On the other hand, Taha et al (2013) analysed the impact of banking intermediation on the economic growth in ten countries in the MENA region and observed a negative correlation between all variables of banking intermediation and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Bank Credit And Agricultural Output In South Africa: Cointegration, Short Run Dynamics And Causality

Chisasa¹,

Makina²

2015

JABR

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“…Concerns with proving this connection could have been met ever since the 1960s, when Goldsmith (1969) reveals, using variables specific to 35 countries in a comparative analysis, a positive relation between the financial sector and economic growth (Arestis, 2005). The 1990s provide a rich empirical literature that signals the importance of the development of the financial sector for economic growth (Rousseau & Wachtel, 2011).…”

Section: The Role Of Financial Systems In Rendering National Economiementioning

confidence: 99%

Funding Alternatives for More Effective European Economies

Mironiuc¹,

Carp²

2012

CIBIMA

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The consolidation and increase in the efficiency of economies is today a priority objective, both at the world level and especially at a European level. But meeting it depends, however, on the nature, size and direction of the influences generated by a whole set of factors. Nevertheless, significant restrictions and advantages come from the way in which financial resources are attracted and used in national economies.This paper aims to study the relationships established between the way in which the need for financial resources of the national economies is covered and their performance, reflected through the evolution of the GDP. In this sense, using the financial information available for European countries, provided by EUROSTAT, OECD and the WB, the connections established between the characteristics of the European financial system (bank loans, market capitalization, loans from private and public bonds) and economic growth are identified and analyzed. This article introduces into the analysis the impact of the investments made in economy, as a source that generates added value, on economic growth. Making a profile of economic effectiveness at a European level (according to the level of financial resources attracted through bank loans, of those drawn through the capital market, and to the size of investments made in economy) allows a punctual evaluation of it, providing clues for any possible strategic corrections. In order to obtain the results of the research, the following tools have been used: the ratio technique, the multiple linear regression analysis and the multiple correspondences factor analysis. The data was processed using the SPSS 19 software.

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Financial structure and economic growth: evidence from time series analyses

Cited by 39 publications

References 35 publications

Finance and growth: Time series evidence on causality

Finance and growth: Time series evidence on causality

Bank Credit And Agricultural Output In South Africa: Cointegration, Short Run Dynamics And Causality

Funding Alternatives for More Effective European Economies

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