Theoretical and Applied Economics
No. 1 / 2018 (614), Spring
The relationship between financial deepening and economic growth: Bootstrap causality approach for the selected upper middle income countries
Dumlupınar University, Kütahya, Turkey
Abstract. This paper investigates the causal relationship between financial deepening and economic growth for fourteen upper middle income countries for the period during 1987-2015. Broad money supply, private credits, financial system deposit liabilities and deposit money banks’ assets are determined as proxies of financial deepening. Kónya (2006) bootstrap panel granger causality approach is used for this relationship based on Seemingly Unrelated Regression (SUR) model. Empirical findings indicate that countries can be clustered according to supply-leading and demand following approach. Besides, there exists evidence for bidirectional causality for some countries.
Contents
Political economy map – A useful tool for public policy decision makers
Macroeconomic uncertainty and FDI in developing countries
Impact of foreign direct investment inflows on tax revenues in OECD countries: A panel cointegration and causality analysis
Macroprudential stability indicators of financial systems: Analysis of Bosnia and Herzegovina and Croatia
Does exchange rate always affect the number of inbound tourists significantly in China?
The effects of Turkish-Russian political relations on bilateral trade balance: Cointegration and causal analysis
The relationship between financial deepening and economic growth: Bootstrap causality approach for the selected upper middle income countries
Financial development, trade openness and growth in India
The impact of carbon dioxide (CO2) emissions on tourism: Does the source of emission matter?
Effect of exchange rate policy on GDP and GDP components: The Kyrgyz Republic Case
Dynamic linkages between corruption, economic growth, and income inequality in Pakistan: Say ‘No’ to corruption
Impact of defence expenditures on external debt: An econometric analysis for Turkey and Turkic Republics