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

Rahman, Mohammad Mafizur and Shahbaz, Muhammad and Farooq, Abdul (2015) Financial development, international trade, and economic growth in Australia: new evidence from multivariate framework analysis. Journal of Asia Pacific Business, 16 (1). pp. 21-43. ISSN 1059-9231

Abstract

This study investigates the relationship between financial
development, international trade and economic growth for
Australia over the period of 1965 to 2010. The autoregressive distributed lag (ARDL) bounds testing approach to cointegration is applied to examine the long-run relationship among the series,whereas stationarity properties of the variables are tested by applying two structural break tests. Results confirmthe long-run relationship among the variables. Financial development, international trade, and capital appear as the drivers of economic growth in short and long runs. The feedback effect exists between international trade and economic growth. Financial development Granger causes economic growth validating supply-side hypothesis.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © Taylor & Francis Group, LLC. Permanent restricted access to published version due to publisher copyright policy. This paper was presented at the Asia Pacific Economic and Business History Conference, February 14–16, 2013, Seoul National University, Seoul, South Korea
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 22 Apr 2015 05:40
Last Modified: 23 May 2017 04:44
Uncontrolled Keywords: financial development; international trade; economic growth; Australia
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9103 International Trade > 910399 International Trade not elsewhere classified
B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
Identification Number or DOI: 10.1080/10599231.2015.997625
URI: http://eprints.usq.edu.au/id/eprint/26768

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