FINANCIAL DEVELOPMENT-ECONOMIC GROWTH NEXUS: A PANEL DATA ANALYSIS UPON OECD COUNTRIES

AKINCI G. Y., AKINCI M., YILMAZ Ö.

HITOTSUBASHI JOURNAL OF ECONOMICS, cilt.55, sa.1, ss.33-50, 2014 (SSCI, Scopus) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 55 Sayı: 1
  • Basım Tarihi: 2014
  • Dergi Adı: HITOTSUBASHI JOURNAL OF ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.33-50
  • Anahtar Kelimeler: financial development, economic growth, panel cointegration test, panel Granger causality test, TIME-SERIES EVIDENCE, STABILIZATION POLICY, COINTEGRATION, REPRESSION, INTERMEDIATION, INVESTMENT, REGRESSION, MARKETS, TESTS
  • Atatürk Üniversitesi Adresli: Evet

Özet

In this paper, the link between financial development and economic growth in OECD member countries is investigated using unbalanced panel cointegration and causality analysis for the period 1980-2011. The results of the Pedroni and Kao Cointegration Analysis show the existence of long-run relationship between financial development and economic growth. The result of Granger Causality Analysis indicates that there is a unidirectional causality relationship running from economic growth to the three proxy variables for financial development while a bidirectional relationship between broad measure of money and economic growth is observed. Therefore, it can be said that the demand-following phenomenon is dominant.