IMF Working Papers

Financial Development and Economic Growth: An Economic Analysis for Singapore

By Lamin Y Leigh

March 1, 1996

Preview Citation

Format: Chicago

Lamin Y Leigh. Financial Development and Economic Growth: An Economic Analysis for Singapore, (USA: International Monetary Fund, 1996) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

With the emergence of the rapidly expanding literature on endogenous growth, the relationship between financial development and economic growth has received a new source of inspiration. Recent cointegration techniques that focus on the estimation and the identification of long-run economic relationship(s) between data variables are particularly appropriate to the study of long run endogenous growth models. This paper has applied these techniques to the Singapore data using a supply-side framework. By and large, the econometric analysis in this paper has yielded results that are in line with predictions of endogenous growth models. In particular, we find that financial development positively affects both transitional and long-run growth in Singapore.

Subject: Balance of payments, Financial markets, Financial sector development, Foreign direct investment, Human capital, Labor, Production, Total factor productivity

Keywords: Aggregate production function, Asia and Pacific, Eastern Europe, Financial sector development, Foreign direct investment, Growth equation model, Growth model, Human capital, Output equation, Physical capital, Production function, Singapore economy, Standard error, Total factor productivity, WP

Publication Details

  • Pages:

    58

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1996/015

  • Stock No:

    WPIEA0151996

  • ISBN:

    9781451843217

  • ISSN:

    1018-5941

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