The Nexus between Finance and Growth: Evidence for OECD Countries

서지정보

· 발행기관 : 강원대학교 사회과학연구원
· 수록지 정보 : 사회과학연구 / 52권 / 2호 / 389 ~ 423페이지
· 저자명 : 전상준

초록

This paper explores the nexus between financial development and economic growth in a panel of 30 OECD economies for the 1960-2009 period. It employs panel unit root and cointegration techniques to test and estimate the long-run equilibrium relationship between real GDP and financial development proxies. Real GDP and financial development variables are found to have unit roots and to be cointegrated, based on 5 distinct panel unit root tests and 9 types of panel cointegration tests. It utilizes various proxies for financial development including monetary aggregates, domestic credit to private sector, and market capitalization of listed companies. Based on three panel cointegration estimation techniques, we find that there is a statistically significant positive bi-directional cointegrating relationship between output growth and financial development proxies encompassing both indirect-finance (banking) and direct-finance (securities) sectors. Empirical findings suggest that financial market development promotes economic growth and in turn economic growth stimulates further financial development. Policy implications involve that the parallel development strategy of the indirect- and direct-finance markets in the economy is essential to the acceleration of economic growth.

참고자료

· 없음