What is it about?
The link between financial develoment and economic growth has been widely research over the last few decades. However, financial development is multidimensional in nature as firstly, financial system can consist of financial markets and financial institutions. Furthermore, financial market and institutions can be measured in various manners such as its efficiency, accessibility and depth. This paper employs a recently proposed index by Sviydzenka (2016, IMF) which captures the multidimensional index of finance and examines its impact on growth in the ASEAN economies.
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Why is it important?
The results show that financial institutions are more effective in spurring growth compared to financial markets in the ASEAN economies. This implies that financial markets need to be further integrated and developed within the region for future economic growth.
Read the Original
This page is a summary of: Examining the relationship between finance, institutions and economic growth: evidence from the ASEAN economies, Economic Change and Restructuring, December 2019, Springer Science + Business Media, DOI: 10.1007/s10644-019-09257-5.
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