Open AccessThe Effect of Financial Development on Economic Growth Countries ASEAN-4
Author(s) -
Rizka Lailatul Millah,
Wisnu Wibowo
Publication year - 2021
Publication title -
jiet (jurnal ilmu ekonomi terapan)
Language(s) - English
Resource type - Journals
ISSN - 2528-1879
DOI - 10.20473/jiet.v6i2.29407
Subject(s) - openness to experience , panel data , capitalization , economics , market capitalization , financial sector development , regression analysis , estimation , fixed effects model , financial sector , finance , econometrics , macroeconomics , stock market , statistics , psychology , social psychology , linguistics , philosophy , mathematics , management , paleontology , horse , biology
This study aims to determine the effect of financial development on economic growth in ASEAN-4 during 1999-2018. This study uses the regression method and panel approaches using the Fixed Effect Model method. This research uses the FEM quantitative method and uses a stata 13 estimation tool. The panel data regression results in this study indicated that financial development has a positive relationship with economic growth. This is evident from the three financial development proxies, which have a positive correlation with economic growth domestic credit to private sector, money broad variables, market capitalization and degree of openness to reflect the real sector. Keywords: financial development, degree of openness, economic growthJEL : G2, O11, O16