Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195728
Authors: 
Qamruzzaman, Md.
Wei, Jianguo
Year of Publication: 
2018
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 6 [Year:] 2018 [Issue:] 3 [Pages:] 1-30
Abstract: 
This study aims to explore the relationship between economic growth, financial innovation, and stock market development of Bangladesh for the period 1980-2016. To investigate long-run cointegration, this study used the autoregressive distributed lagged (ARDL) bounds testing approach. In addition, the Granger-causality test is used to identify directional causality between research variables under the error correction term. Study findings from the ARDL bound testing approach confirm the existence of a long-run association between financial innovation, stock market development, and economic growth. Furthermore, the findings from the Granger-causality test support bidirectional causality between financial innovation, economic growth and stock market development, and economic growth both in the long run and short run. These findings support the theory that market-based financial development and financial innovation in the financial system can spur economic development.
Subjects: 
ARDL
economic growth
financial innovation
stock market development
Granger-causality
JEL: 
O47
P34
D53
O53
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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