Publication:

Finance-growth nexus: insights from an application of threshold regression model to Malaysia's dual financial system

Show simple item record
DC FieldValue
dc.contributor.authorAlaa Alaabed
dc.contributor.authorAbul Mansur Mohammed Masih
dc.date.accessioned2017-12-14T16:12:25Z
dc.date.available2017-12-14T16:12:25Z
dc.date.issued2016
dc.description.abstractThe purpose of this paper is to test the growing converging views regarding the destabilizing and growth-halting impact of interest-based debt financial system. The views are as advocated by the followers of Keynes and Hyman Minsky and those of Islam. Islam discourages interest rate based debt financing as it considers it not very conducive to productive activities and human solidarity. Likewise, since the onset of the crisis of 2007/2008, calls by skeptics of mainstream capitalism have been renewed. The paper applies a threshold regression model to Malaysian data and finds that the relationship between growth and financial development is non-linear. A threshold is estimated, after which credit expansion negatively impacts GDP growth. While the post-threshold negative relationship is found to be statistically significant, the estimated positive relationship at lower levels of financial development is insignificant. The findings provide support to the above views and are hoped to guide monetary authorities to better growth-promoting policy-making.en_US
dc.identifier.citationAlaabed, A., & Mohammed Masih, A. M. (2016). Finance-growth nexus: insights from an application of threshold regression model to Malaysia's dual financial system. Borsa Istanbul Review, 16(2), pp. 63-71. https://doi.org/10.1016/j.bir.2016.01.004en_US
dc.identifier.doihttps://doi.org/10.1016/j.bir.2016.01.004
dc.identifier.issn2214-8450
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/2757
dc.languageEnglish
dc.language.isoengen_US
dc.publisherElsevieren_US
dc.rights2016. Elsevier
dc.sourceSEDONA
dc.subjectCrediten_US
dc.subjectFinancializationen_US
dc.subjectGrowthen_US
dc.subjectThreshold regression modelen_US
dc.subjectIslamic perspectiveen_US
dc.subjectMalaysiaen_US
dc.titleFinance-growth nexus: insights from an application of threshold regression model to Malaysia's dual financial systemen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional finance
dlc.subtopicCapital markets
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
ikr.topic.subtopicConventional financeen_US
Appears in Collections
Journal Article
Files

Abstract View

2661652

View & Download

177336