Causality between credit depth and economic growth: evidence from 24 OECD countries

被引:0
作者
Mikhail Stolbov
机构
[1] Moscow State Institute of International Relations (MGIMO-University),Department of Applied Economics
来源
Empirical Economics | 2017年 / 53卷
关键词
Causality; Economic growth; Financial development; FMOLS; Frequency domain; C22; E44; G21; O16;
D O I
暂无
中图分类号
学科分类号
摘要
Causality between the ratio of domestic private credit to GDP and growth in real GDP per capita is investigated in a country-by-country time-series framework for 24 OECD economies over the period 1980–2013. The proposed threefold methodology to test for causal linkages integrates (1) lag-augmented VAR Granger causality tests, (2) Breitung–Candelon causality tests in the frequency domain, and (3) testing for causal inference based on a fully modified OLS (FMOLS) approach. For 12 of 24 countries in the sample, the three tests yield uniform results in terms of causality presence (absence) and direction. Causality running from credit depth to economic growth is found for the UK, Australia, Switzerland, and Greece. The findings lend no support to the view that financial development shifts from a supply-leading to demand-following pattern as economic development proceeds. The aggregate results mesh well with the current discussion on “too much finance” and disintermediation effects. However, idiosyncratic country determinants also appear significant.
引用
收藏
页码:493 / 524
页数:31
相关论文
共 138 条
[1]  
Abu-Bader S(2008)Financial development and economic growth: empirical evidence from six MENA countries Rev Dev Stud 12 803-817
[2]  
Abu-Qarn AS(2008)A survey of recent developments in the literature of finance and growth J Econ Surv 22 536-576
[3]  
Ang J(2008)Asymmetric dynamics in current account-interest rate Nexus: evidence from Asian countries Invest Manag Financ Innovat 5 103-110
[4]  
Anoruo E(2010)Financial structure and economic growth: evidence from time-series analyses Appl Financ Econ 20 1479-1492
[5]  
Elike U(1998)Estimating and testing linear models with multiple structural changes Econometrica 66 47-78
[6]  
Arestis P(2003)Critical values for multiple structural change test Econ J 6 72-78
[7]  
Luintel A(2011)Further evidence on finance-growth causality: a panel data analysis Econ Syst 35 176-188
[8]  
Luintel KB(2002)Financial development and international trade: is there a link? J Int Econ 57 107-131
[9]  
Bai J(2014)The finance and growth Nexus revisited Econ Lett 124 382-385
[10]  
Perron P(2014)Ireland’s banking system—looking forward Econ Social Rev 45 113-134