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Financial Development And Economic Growth In Malaysia From 1990 To 2019: Vecm Approach

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dc.contributor.authorNorhidayati Mohamed Zakaria,en_US
dc.contributor.authorMohamad Yazis Ali Basahen_US
dc.date.accessioned2024-05-28T03:50:21Z
dc.date.available2024-05-28T03:50:21Z
dc.date.issued2021
dc.date.submitted2022-2-14
dc.descriptionVolume 3 Issue 8 (September 2021) PP. 37-54en_US
dc.description.abstractEconomists believe that efficient financial development is significant for building sustainable economic growth in any country. The global financial crisis, economic events and country’s uniqueness has resulted in continuous research to examine the relationship of financial and economic development using numerous methods and indicators which presented various simulation that led to different views on the linkages. Most of the studies had tested the indicators individually which resulted in less dynamic findings and creates a gap in the research. Hence, this paper aims to examine the relationship between financial development and economic growth in Malaysia by observing different economic indicators concurrently. This study using Malaysia’s annual time series data from 1990 to 2019. This study employs descriptive statistics, regression estimations, unit root test, Johansen co-integration test, VAR, and VECM modeling. The FTSE Kuala Lumpur Composite Index (FBMKLCI) and domestic credit as a percentage to GDP (DC) have been used as proxies for financial development while GDP per capita and Industrial Production Index (IPI) as proxies for economic growth. The findings reveal that FBMKLCI and domestic credit produces a significant relationship towards GDP per capita in the long run and short run. Contrary results found in FBMKLCI-domestic credit-IPI nexus whereby FBMKLCI and domestic credit demonstrate negative association towards IPI. As this study uses the same variables to indicates the relationship towards unalike economic growth gauge, more dynamic work and effort shall be considered to enhance the results. Government and respective institutions shall play their role effectively to revisit or formulate policy and law of the financial system to stimulate the growth of the Malaysian economy.en_US
dc.identifier.citationZakaria, N. M., & Basah, M. Y. A. (2021). Financial Development and Economic Growth in Malaysia From 1990 to 2019: VECM Approach. Advanced International Journal of Banking, Accounting, and Finance, 3 (8), 37-54.en_US
dc.identifier.doi10.35631/AIJBAF.38004.
dc.identifier.epage54
dc.identifier.issn2682-8537
dc.identifier.issue8
dc.identifier.other520-44
dc.identifier.spage37
dc.identifier.urihttp://www.aijbaf.com/PDF/AIJBAF-2021-08-09-04.pdf
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/5138
dc.identifier.volume3
dc.language.isoenen_US
dc.publisherGLOBAL ACADEMIC EXCELLENCE (M) SDN BHDen_US
dc.relation.ispartofAdvance International Journal Of Banking, Accountinf and Finance (AIJBAF)en_US
dc.subjectFBMKLCI, Domestic Credit, GDP Per Capita, IPI, Malaysia, VECMen_US
dc.titleFinancial Development And Economic Growth In Malaysia From 1990 To 2019: Vecm Approachen_US
dc.typeArticleen_US
dspace.entity.typePublication

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