Investigating the Effect of Financial Development on Output Growth Using the ARDL Bounds Testing Approach

Almalki, Abdullah Mohammed; Al-Assaf, Ghazi

doi:10.5539/ijef.v6n9p136

Cited by 3 publications

(2 citation statements)

References 47 publications

(40 reference statements)

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“…They apply the model in both the current and lagged period because a primary bond market, with complex regulatory requirements, responds gradually to changes in macroeconomic conditions. Finally , this econometric approach is a common method in prior literature examining the short- and long-term determinants of financial development in general (Ersoy, 2011; Al-Malki and Al-Assaf, 2014; Lawal et al ., 2016).…”

Section: Methodsmentioning

confidence: 99%

The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment

Nguyen,

Tuan Nguyen,

Nguyen

2024

RBF

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PurposeThis paper aims to examine the effects of investor sentiment on the development of the real estate corporate bond market in Vietnam.Design/methodology/approachThe research uses an autoregressive distributed lag (ARDL) model with quarterly data. Additionally, the study employs Google Trends search data (GVSI) related to topics such as “Real Estate” and “Corporate Bond” to construct a sentiment index.FindingsThe empirical outcomes reveal that real estate market sentiment improves the growth of the real estate corporate bond market, while stock market sentiment reduces it. Also, there is evidence of a long-run negative effect of corporate bond market sentiment on the total value of real estate bond issuance. Further empirical research evidences the short-term effect of sentiment and economic factors on corporate bond development in the real estate industry.Research limitations/implicationsDue to difficulties in collecting data, this paper has the limited sample of 54 valid quarterly observations. Moreover, the sentiment index based on Google search volume data only reflects the interest level of investors, not their attitudes.Practical implicationsThese results yield important implications for policymakers in respect of strengthening the corporate bond market platform and maintaining stability in macroeconomic and monetary policies in order to promote efficient and sustainable market development.Social implicationsThe study offers some suggestions for regulators and governments to improve the real estate corporate bond market.Originality/valueThis is the first quantitative study to examine the effect of sentiment factors on real estate corporate bond development in Vietnam.

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Section: Methodsmentioning

confidence: 99%

The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment

Nguyen,

Tuan Nguyen,

Nguyen

2024

RBF

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“…The Export-Led Growth strategy adopted by Jordan political decisionmakers aims at increasing the capacity to address international market needs, mainly due to the economic openness. Exports are perceived by Jordan government the key pillar of economic growth expansion (Al-Assaf and Al-Abdulrazag, 2015). The barriers for Jordan SMEs to evaluate their internationalization readiness are related to a wide range of factors, such as the shortage of liquidity and working capital, the gaps in external market knowledge and market analysis, incapacity to understand the main differences between national and overseas potential customers, the lack or limited of international business networking and the international sales channels (Jarrar, 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Key Enablers for International Business Expansion of Jordan Companies – A PLS-Sem Approach

QUDAH¹,

CĂPĂȚÎNĂ²,

Micu³

2023

Proceedings of the International Management Conference

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Considering the limited empirical evidence on Jordan companies’ internationalization approach, we seek to identify the prioritization of international dimension of business in this country, to assess Jordan companies’ interest for international expansion, but also expectations related to international expansion. Based on a PLS-SEM approach, the ambition of this study is to explore Jordan companies’ readiness for international expansion and to identify and capture the opportunities of Jordan companies to approach foreign markets, in line with their experience in international business. The findings retrieved from this study contribute to the development of body of knowledge in this research stream, by revealing the correlations among variables with significant predictive power on international business management.

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Exploring the Linkage Between Financial Development and Economic Growth: the ARDL Bounds Testing approach

Kashem¹,

Rahman²

2021

Preprint

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This study investigates the cointegration, short and long run dynamics and causal links between financial development and economic growth in Bangladesh for the period 1973 to 2015. We applied the Autoregressive Distributed Lag (ARDL) Bounds Testing approach and the Granger causality test. The ARDL bounds tests and other cross-checking test confirmed the long run cointegration between economic growth and financial development indicators in Bangladesh. The two financial development indicators, growth in broad money to gross domestic product (GDP) ratio and growth in total deposit liabilities to GDP ratio appeared to have time variant impact on economic growth: the former having significant positive impact in the short- run but negative impact in the long- run, while the latter has significant negative impact in the short- run but positive impact in the long- run. The Granger causality analysis indicated a bidirectional, co-evolutionary process between financial development and economic growth.

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Investigating the Effect of Financial Development on Output Growth Using the ARDL Bounds Testing Approach

Cited by 3 publications

References 47 publications

The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment

The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment

Key Enablers for International Business Expansion of Jordan Companies – A PLS-Sem Approach

Exploring the Linkage Between Financial Development and Economic Growth: the ARDL Bounds Testing approach

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