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125233

DIRECTION OF CAUSALITY BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH EVIDENCE FROM EGYPT

Article

Last updated: 04 Jan 2025

OverviewSimilar Items

Subjects

-

Tags

الاقتصاد والعلوم السياسية

Abstract

ABSTRACT The connection of the causality between capital financial market development and economic growth has received much attention throughout last years. The long-run relationship between the level of financial development and economic performance is generally recognized and accepted (Goldsmith, 1969; King and Levine, 1993). The origin of these types of investigations is found in the research conducted by Schumpeter (1934). He argues that financial intermediaries are important for innovation and development .The current study derives its motivation from the notion that the finance-growth discourse should be narrowed down to individual countries. Therefore this study provides an empirical assessment relating to the linkage between financial development and economic growth in Egypt in the long run and in the short run. The study uses the model of Vector Error Correction Model (VECM) comprising GDP growth rate, some selected financial variables. The study found that GDP is negatively and significantly affected by both the real interest rate and the real exchange rate. Real interest rate is responded positively by variations in GDP. In addition, domestic credit as a percentage of GDP is significantly affected by GDP and exchange rate.  

DOI

10.21608/zcom.2018.125233

Keywords

Keywords: financial development, Economic growth, Egypt

Authors

First Name

إسلام محمد

Last Name

البنا

MiddleName

-

Affiliation

قسم الإقتصاد، کلية التجارة، جامعة المنوفية، مصر،

Email

-

City

المنوفیة

Orcid

-

First Name

محمود عبدالمولي محمد

Last Name

عبدالسلام

MiddleName

-

Affiliation

قسم الإقتصاد، کلية التجارة، جامعة المنوفية، مصر،

Email

-

City

المنوفیة

Orcid

-

Volume

40

Article Issue

3

Related Issue

18279

Issue Date

2018-07-01

Receive Date

2018-04-09

Publish Date

2018-07-01

Page Start

3

Page End

34

Print ISSN

1110-7731

Online ISSN

2735-4512

Article File

ZCOM_Volume 40_Issue 3_Pages 3-34.pdf

PDF . 262.1kB

Link

https://zcom.journals.ekb.eg/article_125233.html

Detail API

https://zcom.journals.ekb.eg/service?article_code=125233

Order

5

Type

تجاریة کل ما یتعلق بالعلوم التجاریة

Type Code

1,572

Publication Type

Journal

Publication Title

مجلة البحوث التجارية

Publication Link

https://zcom.journals.ekb.eg/

MainTitle

DIRECTION OF CAUSALITY BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH EVIDENCE FROM EGYPT

Details

Type

Article

Created At

23 Jan 2023