Further evidence on finance-growth causality: A panel data analysis

Causality between the pillars of development and economic growth: a panel VAR application

“…The estimated results reveal the presence of bidirectional causality between financial development and economic growth, supporting both the demand-following and supply-leading hypotheses on the finance-growth nexus. This result is consistent with the earlier findings of Demetriades and Hussein (1996), Demetriades and Luintel (1996), Blackburn and Hung (1998), Levine (1999), Luintel and Khan (1999), Shan et al (2001), Calderon and Liu (2003), Ang (2008), Wolde-Rufael (2009), Pradhan (2011), Bangake and Eggoh (2011) and Hassan et al (2011. However, it differs from the results of Christopoulos and Tsionas (2004), who found unidirectional causality from financial development to growth, and Jung (1986), who found unidirectional causality from growth to financial development.…”

Financial Deepening and Economic Growth in Gulf Cooperation Council Countries

“…Since, this question has received a great deal of attention by scholars (Demetriades and Hussein, 1996;Arestis and Demetriades, 1997;Luintel and Khan, 1999;Levine et al (1999); Zervos, 1996 and1998;Beck et al, 2000;Esso, 2010;Odhiambo, 2010 and2011;Bangake and Eggoh, 2011). To investigate this relationship, economists and researchers have used different methods of estimation (VAR, VECM, ECT, ARDL, Panel Cointegration, GMM, etc) but their results diverge from one study to another.…”

Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries

“…Empirical results in most of the papers provide that there is a statistically significant relationship between growth and financial development indicators (Akinci Yuce, Akinci, and Yilmaz, 2014;Beck et al, 2008;Beck, Georgiadis, and Straub, 2014;Beck et al, 2000;Benhabib and Spiegel, 2000;Calderón and Liu, 2003;Caporale et al, 2015;Chen and Quang, 2014;Chen, Wu, and Wen, 2013;Chow and Fung, 2013;Christopoulos and Tsionas, 2004;Demetriades and Hook Law, 2006;Ductor and Grechyna, 2015;Dwyfor Evans, Green, and Murinde, 2002;Fisman and Love, 2004;Habibullah and Eng, 2006;Hassan, Sanchez, and Yu, 2011;Ketteni et al, 2007;Lartey and Farka, 2011;Lee and Chang, 2009;Levine et al, 2000;Li, Zhang, and Ma, 2015;Wachtel, 2000, 2002;Saci, Giorgioni, and Holden, 2009;Stengos and Liang, 2005;Zhang, Wang, and Wang, 2012). However, in some of the papers, there is no clear consensus on the relationship between financial development and economic growth for all measurements of financial development (Bangake and Eggoh, 2011;Beck and Levine, 2002;Rioja and Valev, 2004;Samargandi, Fidrmuc, and Ghosh, 2015).…”

“…Some empirical studies provide some considerable evidence of bi-directionality or reverse causality, while the direction of causality between financial development and economic growth is changing by country and sector (Arestis, Demetriades, and Luintel, 2001;Bangake and Eggoh, 2011;Calderón and Liu, 2003;Demetriades and Hussein, 1996;Khalifa Al-Yousif, 2002;Luintel and Khan, 1999;Wang, 1999).…”