Journal of Statistics: Advances in Theory and ApplicationsAuthor's: Yongfu Huang
Pages: [135] - [158]
Received Date: November 23, 2009
Submitted by:
This paper investigates the causality between aggregate private investment and financial development for 43 developing countries. GMM estimation on averaged data suggests the positive causal effects going in both directions, controlling for the possibility of endogeneity bias and omitted variable bias. The findings have rich implications for the conduct of macroeconomic policies in developing countries.
private investment, financial development, dynamic panel data model.
