Citation

an, , Siow-Hooi and Muzafar Shah, Habibullah and Azali , Mohamed and Ahmad Zubaidi , Baharumshah (2007) Testing for financial-led, export-led and import-led growth hypotheses on four Asian emerging economies. International Journal Electronics and Management, 1 (3). pp. 307-335. ISSN 1823-836X

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Abstract

The main objective of this study is to investigate the dynamic relationships between economic growth and macroeconomic variables, namely financial deepening, exports and investment for the cases of Singapore, South Korea, Taiwan and Thailand. The vector error-correction model (VECM) is employed to distinguish between short-run and long-run causal effects in examining the three led-growth determinants. The out-of-sample dynamics of the system are also picked up through variance decomposition analysis. The empirical results suggest that financial deepening leads to economic growth in South Korea, Singapore and Thailand. In terms of exports, the findings demonstrate that export-led growth hypothesis is supported for all four Asian economies, namely Singapore, South Korea, Taiwan and Thailand. Apart from export promotion strategies and financial liberalisation, the evidence also shows that economic growth in these four Asian economies is found to be generated by capital formation or investment

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	04 Feb 2013 04:14
Last Modified:	04 Feb 2013 04:14
URII:	http://shdl.mmu.edu.my/id/eprint/3802

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