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Assessing the asymmetric effects of capital and money markets on economic growth in China

This study examines the effects of capital and money market predictors on economic growth in China using non-linear autoregressive distributed lags and dynamic multiplier methods. Applying asymmetric techniques is based on the hypothesized linear effects of finance on growth. Confirming the asymmetr...

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Detalles Bibliográficos
Autor principal: Azimi, Mohammad Naim
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8790501/
https://www.ncbi.nlm.nih.gov/pubmed/35111984
http://dx.doi.org/10.1016/j.heliyon.2022.e08794
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author Azimi, Mohammad Naim
author_facet Azimi, Mohammad Naim
author_sort Azimi, Mohammad Naim
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description This study examines the effects of capital and money market predictors on economic growth in China using non-linear autoregressive distributed lags and dynamic multiplier methods. Applying asymmetric techniques is based on the hypothesized linear effects of finance on growth. Confirming the asymmetric nexus and long-run bounds amid indicators, the results demonstrate that positive (negative) shocks from money market rate decrease (increase) economic growth, while negative (positive) shocks from real interest rate and total liquidity increase (decrease) growth in the short-run. Besides, the results reveal that the shocks (positive and negative) from market capitalization and stock market turnover increase economic growth, while the shocks from total stock traded decrease growth both in the short and long runs. Moreover, the results of error-correction reveal a steady speed of adjustment of the short-run asymmetries to their long-run equilibrium, implying that improved financial systems attract sound financial projects, leading to sustainable and long-run economic growth. In light of the findings, relevant policy recommendations are discussed.
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spelling pubmed-87905012022-02-01 Assessing the asymmetric effects of capital and money markets on economic growth in China Azimi, Mohammad Naim Heliyon Research Article This study examines the effects of capital and money market predictors on economic growth in China using non-linear autoregressive distributed lags and dynamic multiplier methods. Applying asymmetric techniques is based on the hypothesized linear effects of finance on growth. Confirming the asymmetric nexus and long-run bounds amid indicators, the results demonstrate that positive (negative) shocks from money market rate decrease (increase) economic growth, while negative (positive) shocks from real interest rate and total liquidity increase (decrease) growth in the short-run. Besides, the results reveal that the shocks (positive and negative) from market capitalization and stock market turnover increase economic growth, while the shocks from total stock traded decrease growth both in the short and long runs. Moreover, the results of error-correction reveal a steady speed of adjustment of the short-run asymmetries to their long-run equilibrium, implying that improved financial systems attract sound financial projects, leading to sustainable and long-run economic growth. In light of the findings, relevant policy recommendations are discussed. Elsevier 2022-01-21 /pmc/articles/PMC8790501/ /pubmed/35111984 http://dx.doi.org/10.1016/j.heliyon.2022.e08794 Text en © 2022 The Author(s) https://creativecommons.org/licenses/by/4.0/This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Research Article
Azimi, Mohammad Naim
Assessing the asymmetric effects of capital and money markets on economic growth in China
title Assessing the asymmetric effects of capital and money markets on economic growth in China
title_full Assessing the asymmetric effects of capital and money markets on economic growth in China
title_fullStr Assessing the asymmetric effects of capital and money markets on economic growth in China
title_full_unstemmed Assessing the asymmetric effects of capital and money markets on economic growth in China
title_short Assessing the asymmetric effects of capital and money markets on economic growth in China
title_sort assessing the asymmetric effects of capital and money markets on economic growth in china
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8790501/
https://www.ncbi.nlm.nih.gov/pubmed/35111984
http://dx.doi.org/10.1016/j.heliyon.2022.e08794
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