Financial Development and Economic Growth in the Organization of Islamic Conference Countries

28 Pages Posted: 12 Nov 2017

See all articles by M. Kabir Hassan

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Benito Sanchez

University of New Orleans - College of Business Administration - Department of Economics and Finance

Jung-Suk Yu

School of Urban Planning & Real Estate Studies, Dankook University

Date Written: 2011

Abstract

This study provides evidence on the role of financial development in accounting for economic growth in OIC countries. To document the relationship between financial development and economic growth, we estimate not only unbalanced panel regressions, but also variance decompositions of annual GDP per capita growth rates to examine what proxy measures are most important in economic growth over time and how much they contribute to economic growth among OIC countries. We find positive association between financial development and economic growth in OIC developing countries. Moreover, short-term multivariate analysis implies one-way causality that runs from growth to finance.

Suggested Citation

Hassan, M. Kabir and Sanchez, Benito and Yu, Jung-Suk, Financial Development and Economic Growth in the Organization of Islamic Conference Countries (2011). Journal of King Abdulaziz University: Islamic Economics, Vol. 24, No. 1, 2011, Available at SSRN: https://ssrn.com/abstract=3069010

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Benito Sanchez

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Jung-Suk Yu

School of Urban Planning & Real Estate Studies, Dankook University ( email )

152, Jukjeon-ro, Suji-gu, Yongin-si
Gyeonggi-do, 16890
Korea, Republic of (South Korea)

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