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The role of the financial sector in the UK economy: evidence from a seasonal cointegration analysis
| Content Provider | Scilit |
|---|---|
| Author | Fethi, Sami Katircioglu, Salih |
| Copyright Year | 2015 |
| Description | This article empirically investigates the relationship between stock market/banking sector development and economic growth by controlling for the effects of human and physical capital factors in a seasonal cointegration framework. We use a sample of quarterly and seasonally unadjusted data which covers the period 1965Q1–2011Q4. The results suggest that: (1) the UK financial sector development is a good promoter of the domestic economy both in the long- and the short-run; (2) the supply-leading hypothesis that causality runs from stock market capitalisation and stock market volatility to real GDP per worker is confirmed; (3) stock market volatility has a negative influence on the UK's output, which may reflect economic ambiguity but may also reflect a well-functioning and efficient stock market; (4) if a country has a good infrastructure and a well-educated nation, it enhances economic growth as well as betters the financial sector (i.e. markets and banks); and (5) if a new global financial meltdown is formed, this can easily devastate the UK economy. |
| Related Links | https://www.tandfonline.com/doi/pdf/10.1080/1331677X.2015.1084476?needAccess=true |
| Ending Page | 737 |
| Page Count | 21 |
| Starting Page | 717 |
| ISSN | 1331677X |
| e-ISSN | 18489664 |
| DOI | 10.1080/1331677x.2015.1084476 |
| Journal | Economic Research-Ekonomska Istraživanja |
| Issue Number | 1 |
| Volume Number | 28 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2015-01-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: Economic Research-ekonomska Istraživanja Agricultural Economics Financial Development Economic Growth Seasonal Cointegration Causality the Uk Economy C22 C51 E44 |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics and Econometrics |
