00000caa a22000003i 4500 UP-1685594773862408645 Buklod 20210406153929.0 m | | ta 210406s2007 xx a r |||| u|eng d (iLib)UPBAG-00039679803 BAG rda eng ARTICLE-2975 Majid, M. Shabri Abd. author. Inflation, financial development, and economic growth the case of Malaysia and Thailand M. Shabri Abd. Majid. 2007. pages [217]-238 illustrations 25 cm text rdacontent unmediated rdamedia volume rdacarrier Title was 'Philippine Review of Business and Economics' until 1979. Title changed to 'Philippine Review of Economics and Business' from 1980-2000, and again changed to 'Philippine Review of Economics' since 2001. Includes bibliographical references (pages 235-238). By employing battery of time-series techniques, the paper empirically examines the short- and long-run finance-growth nexus after the 1997 financial crisis in Malaysia and Thailand. Based on autoregressive distributed lag (ARDL) models, the study documents a long-run equilibrium between economic growth, finance depth, and inflation. Granger causality tests reveals that there are (a) a unidirectional causality running from finance to growth in Malaysia, thus supporting the "finance-growth-led hypothesis" or the "supply-leading view"; and (b) a bidirectional causality between financial development and economic growth in Thailand, which accords with the "feedback hypothesis" or "bidirectional causality view". Based on the variance decompositions (VDCs) and the impulse-response functions (IRFs), the study discovers that the variations in the economic growth rely very much on their innovations. To promote growth in these countries, long-run policies?e.g., the enhancement of existing financial institutions both in the banking sector and the stock market?should be given priority. Inflation (Finance) Thailand. Inflation (Finance) Malaysia. Economic development Thailand. Economic development Malaysia. The Philippine Review of Economics Vol. XLIV, No. 1 (June 2007), p. [217]-238. Request full-text access via UPB University Library through https://forms.gle/KZjBv7aRtY6jiL5E9 (viewed 06 April 2021) UPBAG UPBAG-MAIN ARTICLE-2975 Analytics