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, cilt.24, ss.395-408, 2015 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 24 Konu: 3
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1080/09638199.2014.908325
  • Dergi Adı: JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
  • Sayfa Sayısı: ss.395-408

Özet

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.