Causal relation between economic growth and domestic credit in the economic globalization: Evidence from the Hatemi-J's test


Gozgor G.

JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT, vol.24, no.3, pp.395-408, 2015 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 24 Issue: 3
  • Publication Date: 2015
  • Doi Number: 10.1080/09638199.2014.908325
  • Title of Journal : JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
  • Page Numbers: pp.395-408

Abstract

This paper empirically examines causality relationship between economic growth and domestic credit in the economic globalization in 58 developed and developing countries over the period 1970-2010. We use the asymmetric Granger causality test that is based on modified Wald test statistics within bootstrapped critical values. We find a significant causality from domestic credit to economic growth only in seven developing countries. Furthermore, there is a unidirectional causality from economic growth to domestic credit in five developed and 10 developing economies.