Financial development and economic growth: the cases of Thailand, Malaysia, and the Philippines
by Oranuch Wongpiyabovorn
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 9, No. 2, 2016

Abstract: This study investigates relationship between financial development and economic growth in Thailand, Malaysia, and the Philippines from 1974-2011. Panel cointegration approach and vector error correction model are employed to find a long-term relationship between financial development and economic growth in these three countries. When considering overall financial development in a panel data, panel cointegration estimation shows a positive long-term relationship between overall financial development and growth. Subsequently, financial development is divided into three constituent parts of the banking system, equity market, and private bond market. Positive relationships between economic growth and development in the banking sector and bond market are found in the long-run, whereas the stock market is indicated to be insignificantly related to growth. Furthermore, overall financial development is shown to be positively correlated with its own growth in the long-term in Thailand and Malaysias economies. However, insignificant negative correlation is found in the Philippines.

Online publication date: Sun, 26-Jun-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com