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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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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier
2022
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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 |
collection | PubMed |
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. |
format | Online Article Text |
id | pubmed-8790501 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier |
record_format | MEDLINE/PubMed |
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 |
work_keys_str_mv | AT azimimohammadnaim assessingtheasymmetriceffectsofcapitalandmoneymarketsoneconomicgrowthinchina |