Financial development, international trade and economic growth in Australia: new evidence from multivariate framework analysis

Rahman, Mohammad Mafizur and Shahbaz, Muhammad and Farooq, Abdul (2013) Financial development, international trade and economic growth in Australia: new evidence from multivariate framework analysis. In: Asia-Pacific Economic and Business History Conference (APEBH 2013): Markets, Institutions and People in Economic Crisis and Recovery, 14-16 Feb 2013, Seoul, South Korea.

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Abstract

This study investigates the relationship between financial development, international trade and economic growth in case of Australia over the period of 1965-2010. The ARDL bounds testing approach to cointegration was applied to examine the long run relationship among the series, while stationarity properties of the variables were tested by applying two structural break tests i.e. Zivot-Andrews (1992) and Clemente et al. (1998).
Our empirical evidence confirmed the long run relationship among the variables. The results showed that financial development, international trade and capital are the drivers of economic growth both in short run as well as in long run. The feedback effect exists between international trade and economic growth. Financial development Granger causes economic growth validating supply-side hypothesis in case of Australia.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: The online conference proceeding is yet to be availabe in the conference website.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 01 Aug 2013 00:15
Last Modified: 24 May 2017 04:48
Uncontrolled Keywords: financial development; international trade; economic growth; Australia
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150308 International Business
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
B Economic Development > 91 Economic Framework > 9103 International Trade > 910303 Trade Policy
URI: http://eprints.usq.edu.au/id/eprint/23225

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