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Financial Development and Economic Growth: An Economic Analysis for Singapore
Author: Mr. Lamin Y Leigh
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 015
Language:
English
Publication Date:
01 Mar 1996
DOI:
https://doi.org/10.5089/9781451843217.001
ISBN:
9781451843217
ISSN:
1018-5941
Pages:
58
Keywords:
WP; production function; physical capital; growth model; aggregate production function; Singapore economy; standard error; growth equation model; output equation; Financial sector development; Human capital; Total factor productivity; Foreign direct investment; Asia and Pacific; Eastern Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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With the emergence of the rapidly expanding literature on endogenous growth, the relationship between financial development and economic growth has received a new source of inspiration. Recent cointegration techniques that focus on the estimation and the identification of long-run economic relationship(s) between data variables are particularly appropriate to the study of long run endogenous growth models. This paper has applied these techniques to the Singapore data using a supply-side framework. By and large, the econometric analysis in this paper has yielded results that are in line with predictions of endogenous growth models. In particular, we find that financial development positively affects both transitional and long-run growth in Singapore.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund