Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach

Islam, Mohd Aminul and Zakaullah, Muhamad Arif (2009) Cointegration and causality between non-bank financial intermediaries and economic growth in Malaysia: an ARDL bounds testing approach. In: Curtin International Business Conference (CIBC)-2009, December 10 - 12, 2009, Sarawak, Malaysia. (Unpublished)

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Abstract

This paper aims to investigate the causal relationship between nonbank financial intermediaries (NBFIs) and per capita economic growth in Malaysia for the period 1974-2004. The study employs the ARDL bounds testing approach to cointegration. The Granger non causality test in a multivariate vector error correction mechanism (VECM) framework is carried out to ascertain the direction of causality among the variables. The test result suggests that nonbank financial intermediaries and economic growth are cointegrated when economic growth is the dependent variable but are not cointegrated when the other variables are treated as the dependent variables. The result shows evidence of a long-run causality running from nonbank financial intermediaries to per capita economic growth, but not vice versa.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	5651/12917
Uncontrolled Keywords:	Nonbank financial intermediaries, cointegration, ARDL, Granger causality, Malaysia
Subjects:	H Social Sciences > HB Economic Theory > HB131 Methodology.Mathematical economics. Quantitative methods
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Dr Aminul Islam
Date Deposited:	12 Jan 2012 16:24
Last Modified:	12 Jan 2012 16:24
URI:	http://irep.iium.edu.my/id/eprint/12917

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