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AuthorMohsin Ali, M.
AuthorKamrul Hassan, A. F. M.
Available date2009-11-25T12:41:33Z
Available date2015-01-19T08:46:02Z
Publication Date2008
Publication NameStudies of Business and Economics
CitationStudies of Business and Economics, 2008, Vol. 14, No. 2, Pages 5-24.
URIhttp://hdl.handle.net/10576/6851
AbstractThis paper examines the factors that determine the level of financial development in Bangladesh. Three indicators of financial development are used as dependent variables: broad money, private credit and total bank liability-all percentage of Dross Domestic Product (GDP). Interest rate differential, trade openness, inflation, and exchange rate are included in the regression model as explanatory variables. Dependent and independent variables are found cointegrated and their short run adjustments are also found statistically significant. Among the variables, only interest rate differential is found insignificant. Inflation and exchange rate affect the level of financial development significantly irrespective of indicator selected. Trade openness significantly affects financial development when broad money and private credit indicators are used, but in case of bank liability it is found insignificant. The m- paper also examines the impact of financial sector reform program (FSRP) initiated in on financial development. The study finds that FSRP negatively affects financial development. The policy prescriptions that follow from the findings are to maintain inflation at a low level .and increase the integration of the economy wuh rest of the world
Languageen
PublisherQatar University
SubjectError Correction Mechanism
TitleDynamics of Financial Development in Co-Integrated Error Correction Mechanism (Ecm): Evidence from Bangladesh
TypeArticle
Pagination5-24
Issue Number2
Volume Number14


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