TY - JOUR
T1 - Financial deepening and economic growth in gulf cooperation council countries
AU - Hamdi, Helmi
AU - Sbia, Rashid
AU - Tas, Bedri Kamil Onur
N1 - Publisher Copyright:
© 2014 Korea International Economic Association.
PY - 2014
Y1 - 2014
N2 - The goal of this study is to investigate the causal relationship between financial development and economic growth in Gulf Cooperation Council (GCC) countries, i.e. Bahrain, Oman, Kuwait, Qatar, United Arab Emirates and Saudi Arabia, over the period 1980-2012. We employ panel unit root tests, and Error Correction Model and cointegration techniques to detect long-run and short-run causalities between the variables used in our study. The overall empirical results reveal that the financial sector development contributes significantly to economic growth in the GCC countries. Our results could be of great interest for policymakers since the financial sector could play a crucial role in lowering the dependency of the governments to oil revenues and could contribute significantly to spur economic growth.
AB - The goal of this study is to investigate the causal relationship between financial development and economic growth in Gulf Cooperation Council (GCC) countries, i.e. Bahrain, Oman, Kuwait, Qatar, United Arab Emirates and Saudi Arabia, over the period 1980-2012. We employ panel unit root tests, and Error Correction Model and cointegration techniques to detect long-run and short-run causalities between the variables used in our study. The overall empirical results reveal that the financial sector development contributes significantly to economic growth in the GCC countries. Our results could be of great interest for policymakers since the financial sector could play a crucial role in lowering the dependency of the governments to oil revenues and could contribute significantly to spur economic growth.
KW - Finance-growth
KW - GCC
KW - PVECM
UR - http://www.scopus.com/inward/record.url?scp=84899664357&partnerID=8YFLogxK
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U2 - 10.1080/10168737.2014.913653
DO - 10.1080/10168737.2014.913653
M3 - Article
AN - SCOPUS:84899664357
SN - 1016-8737
VL - 28
SP - 459
EP - 473
JO - International Economic Journal
JF - International Economic Journal
IS - 3
ER -