المستخلص: |
This investigation aims to scrutinize the causal association between economic growth and financial development in 18 Arabic nations for the period 1980-2020. In contrast of prior studies, this paper uses a new financial development index proposed by Svirydzenka (2016). Hence, this study explores the causal connection between the two variables using frequency domain spectral causality procedure suggested by Breitung-Candelon (2006). Particularly, the results indicated the existence of unidirectional causality running from financial development to economic growth in the panel data. Additionally, the findings explored a mixture results in individual countries study. The findings of this paper offers critical results that could help decision makers to build robust strategies to enhance the economic as well as the financial developments in Arabic region.
|