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Cointegration and Causality between Financial Development and Economic Growth: Evidence from Morocco

Indonesian Capital Market Review

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Title Cointegration and Causality between Financial Development and Economic Growth: Evidence from Morocco
 
Creator Abdellatif Chatri; Mohamed V University, Rabat Morocco
Abdelouahab Maaruf; Mohamed V University, Rabat Morocco
 
Subject —
 
Description The debate on the relationship between economic growth and financial development has been steadily growing in these recent years. However, the existing theoretical and empirical literature provides conflicting views in this respect. This paper proposes an empirical investigation of the nature of this relationship in the Moroccan context. More precisely, it explores the cointegrating and the causality issue between economic growth and financial development. The later is measured by largely used indicators. In particular, we use capital market proxy, in addition to the traditional indicators of financial intermediation. The findings show that financial development explains significantly the growth, but the direction of causality depends on the indicator used to measure the financial deepening and the time horizon of analysis (short or long terms). Keywords: Financial development, Economic growth, Cointegration, Causality, VECM
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor —
 
Date 2014-01-01
 
Type Peer-reviewed Article
 
Format application/mbox
 
Identifier http://journal.ui.ac.id/index.php/icmr/article/view/2983
 
Source Indonesian Capital Market Review; Vol 6, No 1 (2014): January 2014
 
Language en