Rao, B. Bhaskara (2008): Estimating the permanent growth effects of financial liberalization: The case of Malaysia.
Download (38Kb) | Preview
We argue that the specifications used to estimate the permanent growth effects of reforms in the financial sector are unsatisfactory. Using a modified specification and data for the period 1970 to 2004, we show developments in the financial sector in Malaysia have a small but significant permanent effect on the growth of output. Our results are different from the conclusions in a recent work on this topic.
|Item Type:||MPRA Paper|
|Original Title:||Estimating the permanent growth effects of financial liberalization: The case of Malaysia|
|Keywords:||Growth effects of financial development; Solow model; Malaysia|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F49 - Other
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
|Depositing User:||B. Bhaskara Rao|
|Date Deposited:||16. Apr 2008 13:23|
|Last Modified:||12. Feb 2013 21:55|
Ang, J. B. and McKibbin, W. J., 2007. Financial liberalization, financial sector development and growth: Evidence from Malaysia. Journal of Development Economics, 84, 215–233.
Demirgüç-Kunt, A. and Levine, R. 2008. Finance, Financial Sector Policies and Long-Run Growth,” Policy Research Working Paper No. 4469, (Washington: the World Bank).
Easterly, W., Levine, R., and Rodman, D. 2004. Aid, policies and growth: Comment, American Economic Review, 94, 774–80.
Edwards, S., 1998. Openness, productivity and growth: What do we really know? The Economic Journal 108, 383-398
Ericsson, N. R. and MacKinnon, J. G., 2002. Distributions of error correction tests for cointegration, The Econometrics Journal, 5, 285-318. Granger, C. W. J. 1988. Some recent developments in a concept of causality, Journal of Econometrics, 39, 199-211.
Hendry, D. F. and Krolzig, H. M., 2001. Automatic Econometric Model Selection, Oxford: Timberlake Consultants Press.
-------and ------- (2005) The properties of automatic GETS modeling, The Economic Journal, 115, C32-C61.
Rao, B. B. , (2008) Time Series Econometrics of Growth Models: A Guide for the Applied Economist, forthcoming, Applied Economics.
Solow, R.M., (1956) A contribution to the theory of economic growth, Quarterly Journal of Economics, 70: 65-94.