Financial development and economic growth nexus: Bangladesh Perspective
Article
Article Title | Financial development and economic growth nexus: Bangladesh Perspective |
---|---|
ERA Journal ID | 18720 |
Article Category | Article |
Authors | Kashem, Mohammad Abul and Rahman, Mohammad Mafiz |
Journal Title | Asian Profile |
Journal Citation | 50 (3), pp. 237-257 |
Number of Pages | 21 |
Year | 2022 |
Publisher | Asian Research Service |
Place of Publication | Canada |
ISSN | 0304-8675 |
Web Address (URL) | http://www.asianresearchservice.com/Asianprofile.htm |
Abstract | This study investigates if there is any linkage between financial development and economic growth of Bangladesh. Taking annual data of 1973 – 2020, we applied the graphical, statistical analysis, ARDL Bounds Testing approach and the Granger causality test to examine the short and long-run dynamics and causal link. The ARDL bounds tests and other cross-checking tests confirmed the long-run co-integration between economic growth and financial development indicators. The two financial development indicators, growth in broad money to GDP ratio and growth in total deposit liabilities to GDP ratio appeared to have negative and positive impacts on economic growth in both the short and long runs. The Granger causality analysis indicated a bidirectional, co-evolutionary process between financial development and economic growth. |
Keywords | Financial development; economic growth; ARDL model, Granger Causality; Bangladesh |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 380112. Macroeconomics (incl. monetary and fiscal theory) |
380205. Time-series analysis | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Bangladesh Bank, Bangladesh |
School of Business |
https://research.usq.edu.au/item/w3922/financial-development-and-economic-growth-nexus-bangladesh-perspective
100
total views2
total downloads1
views this month0
downloads this month