Estimating the permanent growth effects of financial liberalization: The case of Malaysia

Rao, B. Bhaskara (2008): Estimating the permanent growth effects of financial liberalization: The case of Malaysia.

Abstract

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
• Language: English
• 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, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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