he causality between financial development and economic growth : case of Algeria

Joint Authors

Balhajj, Fatihah
Bu Nab, Hibah Ibrahim

Source

Revue du Chercheur

Issue

Vol. 20, Issue 1 (31 Dec. 2020), pp.35-46, 12 p.

Publisher

Kasdi Merbah University Faculty of Economics Commercial Sciences and Management Sciences

Publication Date

2020-12-31

Country of Publication

Algeria

No. of Pages

12

Main Subjects

Economy and Commerce
Financial and Accounting Sciences

Topics

Abstract EN

This paper aims to investigate the direction of causality between financial development and economic growth in Algeria over the period 1980-2018 using Toda and Yamamoto (1995) approach for Granger non-Causality test in the context of VAR model.

The study was carried out using two indicators to proxy the level of financial development.

The first proxy is the monetization ratio (M2 / GDP) as an indicator of the financial depth or size of the financial development intermediaries sector.

The second proxy is financial intermediation ratio expressed by the credit to private sector as percentage of GDP.

While, the GDP per capita growth was used as measure of economic growth.

The results suggest unidirectional causality relationship running from the economic growth to the financial sector as explained by the broad money to GDP.

Nevertheless, the findings suggest noncausality between credits to private sector to GDP and economic growth.

American Psychological Association (APA)

Bu Nab, Hibah Ibrahim& Balhajj, Fatihah. 2020. he causality between financial development and economic growth : case of Algeria. Revue du Chercheur،Vol. 20, no. 1, pp.35-46.
https://search.emarefa.net/detail/BIM-1006183

Modern Language Association (MLA)

Bu Nab, Hibah Ibrahim& Balhajj, Fatihah. he causality between financial development and economic growth : case of Algeria. Revue du Chercheur Vol. 20, no. 1 (2020), pp.35-46.
https://search.emarefa.net/detail/BIM-1006183

American Medical Association (AMA)

Bu Nab, Hibah Ibrahim& Balhajj, Fatihah. he causality between financial development and economic growth : case of Algeria. Revue du Chercheur. 2020. Vol. 20, no. 1, pp.35-46.
https://search.emarefa.net/detail/BIM-1006183

Data Type

Journal Articles

Language

English

Notes

Includes appendices : p. 43-45

Record ID

BIM-1006183