Financial Development and Economic Growth in Asian Countries: A Panel Empirical Investigation

Abstract

The research aimed to evaluate the association of financial development and economic growth where the case of Asia was considered. The research used quantitative design where the preliminary testing was conducted using descriptive statistics and unit root testing. The sample size comprised of 10 emerging Asian countries and the time-frame for the study was 1990 to 2018. The main techniques of analysis were Pedroni cointegration, dynamic panel least squares (DOLS) and Granger Causality. It was found that long-run equilibrium existed between financial development and economic growth. Also, in terms of money supply, short-run association was also found. The research was limited to the case of Asian countries, therefore, in future, the evaluation of European countries can be conducted or African region can also be undertaken into consideration.