Financial Development and Economic Growth an Advanced Econometric Modeling Approach
| Autor: | Imran Khan, Atiq ur Rehman, Saud Ahmad Khan |
|---|---|
| Rok vydání: | 2021 |
| Zdroj: | Global Economics Review. :160-172 |
| ISSN: | 2707-0093 2521-2974 |
| DOI: | 10.31703/ger.2021(vi-ii).13 |
| Popis: | Financial development is essential for economic growth for all economies. In the current study, we examine the importance of financial development on economic growth for different countries using advanced econometric techniques of model selection. We use Auto metrics, Elastic Net,and Extreme Bound Analysis to retain the variables that affect the economic growth by using the data (1980-2019) on 32 countries from different regions. We used an advanced approach (retention frequency) to investigate the relationship between financial development and economic growth. The results show that financial development is a significant retention frequency in the case of Asian, European, and American countries directly and indirectly. For in-sample forecasting, we use root mean square error (RMSE) and mean square prediction error (MSPE). Extreme Bound Analysis presents a superior predictive performance interms of the lowest RMSE and MPSE that are 1.03 and 0.05,respectively. |
| Databáze: | OpenAIRE |
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