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Financial development and economic growth in Sri Lanka

Journal Article


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Abstract


  • This study investigates the causal relationship between financial development and economic growth in Sri Lanka over the period 1955 to 2005. After considering the time series characteristics of six measures of financial development, Johansen cointegration and the appropriate Error Correction Model are used to investigate the causal relationship between financial development and economic growth. The findings suggest that broad money causes economic growth with two-way causality. The major finding of this study does not strongly support the view that financial development boosts economic growth.

UOW Authors


Publication Date


  • 2009

Citation


  • Perera, N. & Paudel, R. (2009). Financial development and economic growth in Sri Lanka. Applied Econometrics and International Development, 9 (1), 157-164.

Scopus Eid


  • 2-s2.0-68249153689

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1016&context=gsbpapers

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/14

Has Global Citation Frequency


Number Of Pages


  • 7

Start Page


  • 157

End Page


  • 164

Volume


  • 9

Issue


  • 1

Abstract


  • This study investigates the causal relationship between financial development and economic growth in Sri Lanka over the period 1955 to 2005. After considering the time series characteristics of six measures of financial development, Johansen cointegration and the appropriate Error Correction Model are used to investigate the causal relationship between financial development and economic growth. The findings suggest that broad money causes economic growth with two-way causality. The major finding of this study does not strongly support the view that financial development boosts economic growth.

UOW Authors


Publication Date


  • 2009

Citation


  • Perera, N. & Paudel, R. (2009). Financial development and economic growth in Sri Lanka. Applied Econometrics and International Development, 9 (1), 157-164.

Scopus Eid


  • 2-s2.0-68249153689

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1016&context=gsbpapers

Ro Metadata Url


  • http://ro.uow.edu.au/gsbpapers/14

Has Global Citation Frequency


Number Of Pages


  • 7

Start Page


  • 157

End Page


  • 164

Volume


  • 9

Issue


  • 1