Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162083
Authors: 
Nyasha, Sheilla
Odhiambo, Nicholas M.
Year of Publication: 
2016
Citation: 
[Journal:] Contemporary Economics [ISSN:] 2084-0845 [Volume:] 10 [Year:] 2016 [Issue:] 2 [Pages:] 163-174
Abstract: 
This paper examines the dynamic impact of both bank- and market-based financial development on economic growth in Australia during the period from 1980 to 2012. The study uses the autoregressive distributed lag (ARDL) bounds testing approach to examine this linkage. Unlike certain previous studies, this study uses both bank- and market-based financial development indices to measure the level of financial sector development in Australia. These indices were computed using the means-removed average method. The empirical results of this study show that while bankbased financial development has a short-run positive impact on economic growth in Australia, market-based financial development has no significant impact on economic growth, both in the short run and in the long run. These results imply that, in Australia, it is of paramount importance to concentrate on pro-banking sector policies, at least in the short run, to stimulate growth.
Subjects: 
Australia
bank-based financial development
market-based financial development
economic growth
JEL: 
G10
G20
O16
Persistent Identifier of the first edition: 
Document Type: 
Article

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