The relevance of financial development for economic growth: a bounds test approach

• Main Authors: Wan Ngah, Wan Azman Saini, Habibullah, Muzafar Shah, Mohamed, Azali
• Format: Article
• Language: English
• Published: Universiti Putra Malaysia Press 2000
• Online Access: http://psasir.upm.edu.my/id/eprint/3312/1/The%20relevance%20of%20financial%20development%20for%20economic%20growth.pdf; http://psasir.upm.edu.my/id/eprint/3312/; http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-8-1-3
• Institution: Universiti Putra Malaysia

The purpose of the study is to determine whether financial development is relevant for economic growth in Malaysia for the period 1955 to 1997. Using a bounds test proposed by Pesaran et al. (1996), our results suggest that using both linear and log-linear specifications, the data do not support the existence of long-run relationships between financial development and economic growth during the period under study.