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Financial deepening and poverty reduction: causality linkage in the case of Malaysia

Mustafa, Siti Aisyah and Zainal, Nur Syuhada and Kassim, Salina (2014) Financial deepening and poverty reduction: causality linkage in the case of Malaysia. In: Terengganu International Business and Economics Conference 2014 (TIBEC IV), 18-20 October 2012, Primula Beach Hotel, Kuala Terengganu. (Unpublished)

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Abstract

This paper investigates the interaction between financial deepening and poverty reduction in the case of Malaysia from period of 1975 to 2012. We employed ARDL bounds testing approach to find long run cointegration as well as Granger causality to discover the short run and long run dynamics between the variables. Our findings show that when monetization variable is used a proxy for financial deepening, poverty reduction measured by per capita consumption seems to cause the development of financial sector irrespective of whether the causality test is conducted in the short run or in the long run. The results reflect the importance of aggregate demand on goods and services among households to trigger the size of liquid money in Malaysian economy.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 4600/42071
Uncontrolled Keywords: financial deepening; poverty; Malaysia; ardl
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences
Depositing User: Dr Salina Kassim
Date Deposited: 11 May 2015 10:00
Last Modified: 11 May 2015 10:00
URI: http://irep.iium.edu.my/id/eprint/42071

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