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Item Restricted Financial development, economic growth, international trade, and environmental degradation: the ASEAN+ case(2019-05) Quejada, Angel Derrickvhel ; Jandoc, Karl Robert L.Item Restricted FDI, financial development and growth: an ARDL cointegration approach for the Philippines(2014-08) Dagli, Suzette B.; Daway, Sarah Lynne S.This study explores the long-run and short-run links among FDI, financial development and growth in the Philippines using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration found in Pesaran et al. (2001). The empirical results show that FDI has no significant long-run and short-run unconditional impacts on growth. Moreover, FDI is found to have both insignificant short-run and long-run effects on growth conditional on the level of financial sector development. These results are robust to some alternative specifications of the model, indicating weaknesses in the FDI and financial policies in the Philippines that call for future policy reforms.Item Restricted Financial development and other preconditions for financial integration(2016-05) Cheng, Kent Jason G.; Daway, Sarah Lynne S.Existing financial integration studies have mostly been about how the phenomenon causes economic development, not on its drivers. Veering away from the economic-growth centric theme, this study tries to determine what causes financial integration represented by FDI inflows, portfolio equities net inflows, and the volume of foreign assets and foreign liabilities. Using dynamic generalized method-of-moments estimator on a panel of developed and developing countries from 1996 to 2011, the main explanatory variable of interest – financial development measured in terms of private credit and stock market capitalization – is found to stimulate foreign capital conditioned on the intertwining effects of current economic development and institutional quality. But when the data is disaggregated according to the countries’ income levels, the influence on foreign capital inflow from developed countries’ financial development becomes negative in contrast with the developing countries case. Lastly, this new evidence suggests that the relationship of local financial sector development and financial globalization displays reverse causality.Item Restricted Financial development and economic growth in the Philippines: a vector error correction model approach(2009-10) Calub, Renz Adrian T.; Llido, Christian May L.; Tecson, Gwendolyn R.Theoretically and empirically, financial development has been associated with economic growth. Many studies point out the existence of a positive relationship between developing the financial sector and the growth of the real economy. The financial sector channels funds to the productive sectors of the real economy. On the other hand, there are studies asserting that real economic growth precedes financial development. The real economy demands the services of the financial sector. While the former may be true across countries, does this hold true on a case to case basis such as the Philippines? To answer this, we employ vector error correction modelling on an economic growth indicator (real GDP), financial development indicators (M2 to GDP ratio and GVA of finance), and a stock market development indicator (total value of shares traded over GDP). We also use the impulse response function to augment the results from the vector error correction model. The estimation showed that in the Philippines, financial development is preceded by economic growth, although after a certain period, financial development becomes a significant factor to economic growth. The results imply that the Philippine financial sector has not yet attained a relatively sophisticated state where its positive effect on real economy can be realized. Furthermore, while the economy and the financial sector are demand-following, this does not preclude the necessity of employing policies that could maximize the benefits from the interaction of the financial sector and the real economy.