Causal Relationship between Economic Growth, Financial Deepening, Foreign Direct Investment and Innovation: Evidence from China

Asian Economic and Financial Review

Mollah Aminul Islam^1¹ 

[1] PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, P.R.China Professor, School of Economics, Huazhong University of Science and Technology, Wuhan, P.R.China. PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, P.R.China PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, P.R.China PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, P.R.China Master Degree Candidate, School of Health Science, Wuhan University, Wuhan, P.R.China^1

关键词: Economic growth;    Financial deepening;    Innovation;    FDI;    ARDL;   

DOI  :  10.18488/journal.aefr.2018.88.1086.1101

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This research examines the cointegration and causal relationship between economic growth, financial deepening, foreign direct investment and innovation in the context of China. The empirical results of the ARDL Bounds test to cointegration and VECM Granger causality validate the cointegration and causal association among variables. The study offers policy implication to bring more depth to the financial system to elevate potential innovative environment through FDI. Moreover, to boost real growth through the creation of spillover effects and to enrich the absorptive capacity, the policymakers need to pay attention to financial institutions access, depth and efficiency.

【 授权许可】

CC BY