Development impact of Non-Bank Financial Intermediaries on economic growth in Malaysia: an empirical investigation

Islam, Mohd Aminul and Osman, Jamil (2011) Development impact of Non-Bank Financial Intermediaries on economic growth in Malaysia: an empirical investigation. International Journal of Business and Social Science, 2 (14). pp. 187-198. ISSN 2219-6021 (O), 2219-1933 (P)

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Abstract

This paper aims to empirically examine the development impact of Non-Bank Financial Intermediaries on economic growth in Malaysia using time series data over the period spanning 1974 to 2004. The study employs bounds testing approach to cointegration and error correction mechanism to investigate the existence of a long run equilibrium relationship between NBFIs and economic growth. The study finds evidence of a long run cointegrating relationship between NBFIs and real per capita income. The empirical results indicate that the development of NBFIs positively and significantly influences per capita income in Malaysia. In addition, the CUSUM and CUSUMSQ tests confirm the stability of the model.

Item Type:	Article (Journal)
Additional Information:	5651/12478
Uncontrolled Keywords:	Non-bank financial intermediaries, bounds testing approach, cointegration, Malaysia.
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Dr Aminul Islam
Date Deposited:	03 Jan 2012 12:14
Last Modified:	03 Jan 2012 12:16
URI:	http://irep.iium.edu.my/id/eprint/12478

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