Modeling Dynamic Communications Between Financial Development Trade & Growth: Mint Economy

The objective of the study is to explore the dynamic relationship amid financial expansion, economic growth and international trade for MINT (Mexico, Indonesia, Nigeria & Turkey), an emerging economic unit in the globe. Using Panel Vector Auto Regression modeling techniques and Impulse Response...

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Bibliographic Details
Published inSCMS journal of Indian management Vol. 16; no. 2; pp. 43 - 58
Main Authors Majumder, Madhumita Guha, Ramalingam, Nithya, Ramudu, P Janaki
Format Journal Article
LanguageEnglish
Published Kochi School of Communication & Management Studies 01.04.2019
Subjects
Causality
Economic growth
Economic models
Financial services
GDP
Gross Domestic Product
Hypotheses
International trade
Researchers
Securities markets
Stock exchanges
Studies
Variables
Turkey
United States > US
Mexico
South Africa
Nigeria
Indonesia
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Summary:The objective of the study is to explore the dynamic relationship amid financial expansion, economic growth and international trade for MINT (Mexico, Indonesia, Nigeria & Turkey), an emerging economic unit in the globe. Using Panel Vector Auto Regression modeling techniques and Impulse Response Functions, the research analyses how financial expansion boosts economic growth & vice versa. The outcome reveals that economic progression drives production & that in turn develops financial sector. Further, the result exposes that even though stock market growth for the MINT group is nascent, it contributes significantly to financial development. The dynamic behavior among the financial & growth variables illustrate that a shock in broad money affects economic growth immediately for a short period along with stock market. A similar change in growth leaves a notable impact on domestic credit & on international trade. The results will help policy makers to strategize monetary & fiscal policies of these four nations.
ISSN:0973-3167