Financial development and economic growth: the case of Taiwan

被引:64
作者
Chang, TY
Caudill, SB [1 ]
机构
[1] Auburn Univ, Dept Econ, Auburn, AL 36849 USA
[2] Feng Chia Univ, Dept Econ, Taichung 40724, Taiwan
[3] Feng Chia Univ, Grad Inst Econ, Taichung 40724, Taiwan
关键词
D O I
10.1080/0003684042000338702
中图分类号
F [经济];
学科分类号
02 [经济学];
摘要
This paper examines the relationship between financial development and economic growth in Taiwan from 1962 to 1998. Using a four-variable VAR model, the competing hypotheses of demand-following versus supply-leading are empirically tested. The results from Granger causality tests based on vector error-correction models (VECM) suggest unidirectional causality running from financial development (measured as the ratio of M2 to GDP) to economic growth. This result supports the supply-leading hypothesis for Taiwan. This finding highlights the importance of financial development in Taiwan's recent growth.
引用
收藏
页码:1329 / 1335
页数:7
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