An Investigation on Financial Development, Trade Openness and Economic Growth: Var Approach

Authors

  • HAFNIDA HASAN
  • BASEL J. A. ALI
  • NYMPHA JOSEPH
  • MOHAMMAD SALEM OUDAT

Keywords:

financial development (FD), trade openness (TO), economic growth (EG), VAR

Abstract

The aim of this analysis is to examine the impact on economic growth in Bahrain from 1986 to 2018 from FDs and trade openness. To investigate the data, the Vector Autoregressive Model (VAR) and the causality of Granger have been used. The results show that all vector lives are co-integrated at 5 percent meaningful levels in the long term. In the near term, economic growth will only be influenced by financial progress. The Granger Causality (CC) Test reveals the unidirectionality of global and financial developments. In this way, policymakers should advance FD and promote more free markets, in the end the aim is to increase economic growth.

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Published

2021-04-30

How to Cite

HASAN, H. ., ALI, B. J. A. ., JOSEPH, N. ., & OUDAT, M. S. . (2021). An Investigation on Financial Development, Trade Openness and Economic Growth: Var Approach. The Journal of Contemporary Issues in Business and Government, 27(2), 4289–4295. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/1349

Issue

Vol. 27 No. 2 (2021): The journal of contemporary issues in business and government

Section

Articles

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