Searching for the Finance-Growth Nexus in Libya /

This paper investigates the causal relationship between financial development and economic growth in Libya during the period 1970-2010. The empirical results vary with estimation methodology and model specification, but indicate the lack of long-run relationship between financial intermediation and...

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Bibliografiske detaljer
Hovedforfatter: Cevik, Serhan
Andre forfattere: Rahmati, Mohammad
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2013.
Serier:IMF Working Papers; Working Paper ; No. 2013/092
Online adgang:Full text available on IMF
Beskrivelse
Summary:This paper investigates the causal relationship between financial development and economic growth in Libya during the period 1970-2010. The empirical results vary with estimation methodology and model specification, but indicate the lack of long-run relationship between financial intermediation and nonhydrocarbon output growth. The OLS estimation shows that financial development has a statistically significant negative effect on real nonhydrocarbon GDP per capita growth. However, the VAR-based estimations present statistically insignificant results, albeit still attaching a negative coefficient to financial intermediation. It appears that nonhydrocarbon economic activity depends largely on government spending, which is in turn determined by the country's hydrocarbon earnings.
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Fysisk beskrivelse:1 online resource (21 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students