Financial development and economic growth: an empirical evidence from the GCC countries using static and dynamic panel data

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• 作者：Naeem Muhammad ; Abu Reza Mohammad Islam…
• 关键词：Financial development ; Economic growth ; Panel data ; GCC countries ; System GMM
• 刊名：Journal of Economics and Finance
• 出版年：2016
• 出版时间：October 2016
• 年：2016
• 卷：40
• 期：4
• 页码：773-791
• 全文大小：406 KB
• 刊物主题：Economics general; Financial Economics; Finance/Investment/Banking;
• 出版者：Springer US
• ISSN：1938-9744
• 卷排序：40

文摘

This paper contributes to the existing empirics of finance-growth nexus of all GCC countries with new results based on a larger dataset and longer time period 1975–2012, incorporating additional control variables, FDI, interaction term of FDI & financial development variables, and oil production. We employed four estimation techniques, Pooled OLS, Fixed effect estimation, Random effect estimation, and the system GMM estimation and used static and dynamic panel data. We obtain a robust finding of consistently a positive effect of financial sector development (FSD) on economic growth of GCC region with implication that a substantial improvement in FSD was in place. The results indicate that FDI, Fixed capital formation and oil production contribute positively to the economic growth of this region. The study results signify for a continuity of the on-going financial reform process, supervision & monitoring exercises to bring hitherto more dividends to the GCC economies.