Causal Nexus between Financial Integration and Economic Growth

• 영문명: Causal Nexus between Financial Integration and Economic Growth : Does Nonlinearity Matter?
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Sami Saafi Meriem Bel Haj Mohamed Makram Ben Doudou
• 간행물 정보: 『Journal of Economic Integration』제31권 제4호, 817~854쪽, 전체 38쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2016.12.31

영문 초록

Empirical studies that rely on a linear framework typically fail to find evidence of a causal link between financial integration and economic growth. In this study, we extend the analysis by applying both linear and nonlinear Granger-causality tests to data for 19 emerging and developing countries. Consistent with previous research, the linear causality analysis reveals only weak causal linkages between financial integration and economic growth. In contrast, the nonlinear causality analysis provides evidence of significant nonlinear causality in 18 out of 19 countries. The growth hypothesis holds true for Argentina, Bolivia, Colombia, Morocco, Tunisia, and Venezuela whereas a reverse relation was found in Brazil, Chile, Cote d`Ivoire, Costa Rica, Ecuador, Egypt, South Korea, Malaysia, Mexico, and Paraguay. The feedback hypothesis also exists in Bolivia and Uruguay. Overall, the divergent results in the 19 countries imply that policies cannot be uniformly implemented as there would have been different effects in each country.

목차

Ⅰ. Introduction

Ⅱ. Methodology

Ⅲ. Data and Summary Statistics

Ⅳ. Results

Ⅴ. Conclusions

키워드

Financial Integration Economic Growth Nonlinear Granger Causality Developing Countries Emerging Economies