PHÁT TRIỂN TÀI CHÍNH VÀ TĂNG TRƯỞNG KINH tế tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY PHẠM DƯƠNG PHƯƠNG THẢO FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH Major: Finance – Banking Code: 9340201 SUMMARY OF ECONOMICS PH.D’S THESIS Ho Chi Minh City - 2019 The project is completed at: University of Economics Ho Chi Minh City Supervisor: Associate Professor, Ph.D Phan Thị Bích Nguyệt Reviewer : Reviewer : Reviewer : The dissertation will be defended at the committee at the school level at: time day month year The thesis can be found at the library: University of Economics Ho Chi Minh City CHAPTER 1: INTRODUCTION 1.1 Research problem Economic growth has always been considered one of the top concerns of countries around the world Since the 18th century, many theoretical and empirical studies have shown that the development of the national financial system plays an important role and is one of the basic factors that make a difference in growth ofcountries (Levine, 1997) Since then, there have been many different, even contradictory points of view, in assessing the role of financial development in economic growth In the past, with a lot of theories and empirical evidence supporting, it is believed that the more the financial system develops, the more it promotes economic growth This group of points of view has received a great deal of consensus from researchers until recently Besides the view on the positive impact of financial development on economic growth, there appears the opposite view flow such as Lucas (1988) states that economists were overemphasizing the role of financial factors in economic growth, even some authors also argued that financial development has a negative and detrimental effect on economic growth, or no sufficient evidence to confirm the positive effect of this factor on growth Moreover, the global crisis 2008 forced both researchers and practical policy makers to reconsider their previous conclusions This crisis is an evidence of how the financial system malfunctioning directly and indirectly wastes national resources After the crisis, specialists of International Monetary Fund (IMF) have warned that financial development should only reach an optimal level, which over it will likely hinder economic growth Therefore, whether effects of financial system development on economic growth are positive or negative should be re-considered to have more proper anwers The reversal of the impact of financial development on economic growth is also found in many subsequent studies such as Rioja and Valev (2004a), Shen and Lee (2006), Ergungor (2008), Huang and Lin (2009), Law, Azman-Saini, and Ibrahim (2013) but the problem arising here is the contradiction in their conclusions For Asian countries, the number of empirical studies on this topic officially published is quite small such as Jeanneney et al (2006), Ang (2009), Wong and Zhou (2010) Furthermore, samples of these research did not fully reflect the characteristics of Asian countries after the 2008 crisis because of limited access to data such as Wong and Zhou (2010) compared Asian countries Hong Kong, China, Japan with economies US and UK in the period before the crisis (19882008); Iyare Moore (2011) studied with the sample of countries in which there was only one Asian country, that is Singapore Hsueh et al (2013) analyzed also with sample of only 10 Asian countries (no Vietnam) and only limited in the period of 1980-2007, i.e before the crisis, in which the economic-political context was much different from the present Law and Singh (2014) studied 87 developed and developing economies in the world in 1980-2010; however Asia also had only countries included in this study while China, Vietnam, and other Asian economies were not considered 1.2 Research gaps The researchers' views on the role and impact of financial development on economic growth are not consistent but there are contradiction in conclusions There is no consensus among world financial experts on the direction of development necessary for the financial systems of Asian countries While IMF experts has warned of potential risks to the economy if too much financial development from 2012, now on the official website of Asian Development Bank (ADB) still suggests that Asian countries should increase their financial development based on empirical resaerch results cited by these experts showing that financial development of Asian countries is still much lower than of European and American, and financial development has positive effect on economic growth So, what is right policy for financial development of Asian economies? The economic and political context of the world after the crisis in 2008 has many fluctuations and differences compared to the previous period, posing problems for governments as well as economic researchers to reconsider the role of financial development on growth For Asia, although many emerging economies have high growth rates and attract much attention of investors, this continent has not really been researched fully and completely in studies Especially, analization of recent practice shows that growth rates of countries in Asia are tending to decrease According to IMF’ forecast, over the next three decades, this trend of growth in Asian countries will become more and more serious, which raises the issue that Asian economies need to take appropriate solutions to maintain economic growth in long term, regarding the policy of developing the national financial system- one of important issues of economic growth policy Are conclusions found from previous studies on European countries suitable for application in Asian countries, with a lot of particular differences? In addition, no official research has been carried out to fully coordinate both aspects of financial development: the development of the banking sector and the development of the stock market These above-mentioned research gaps lead to the need of shed light on true impact of financial development on economic growth with a sample for Asian countries, taking into account both income factors and the characteristics of emerging economies This is also the author’s motivation to implement this thesis with expectation to contribute more to the academic field more clearly understanding of Asian economies in new context of the world 1.3 Research Objectives This research mainly focuses on the following objectives: Examine the effects of financial development on economic growth in Asian economies, based on the research results to suggest orientation solutions to develop financial system for them, aiming to economic growth in long term To that, there are particular objectives in detailed:  Determine the threshold of financial development in the relationship between financial development and economic growth  Test how financial development affects on economic growth  Based on the research results, suggest orientation solutions to develop financial system for Asian countries 1.4 Contributions The thesis has contributed by providing detailed information to theory on impacts of financial system development on economic growth with case studies on Asian countries Before the 2008 financial crisis, economic researchers and policy-makers assumed that more finance more economic growth, which implied expansion and development of financial sector as much as possible This has become an essential element in the research models of growth However, empirical results of this thesis have proved with evidence that it is not always good to develop a strong financial sector for the economy It is more important to determine the limits of financial development to ensure long-term economic growth Moreover, other previous research in the same topic focused little on Asian Countries while they are potential regions developing strongly It is necessary to have a full official research about these economies Therefore, this thesis is the first one to be carried on with more complete sample (33 Asian countries), using sub-samples on income for analyzing and comparison, combining bank-based and market-based data With the empirical results, this thesis also contributes on academic review on the topic Theoretical and empirical-researching trends on the relationship between finance and economic growth are reviewed systematically and coherently Based on the results, the author also suggests solutions and ideas on policies of finanacial development aimed to long-term economic growth for Asian economies So, they are helpful reference for policy-makers and governments 6 CHAPTER LITERATURE REVIEW 2.1 Financial development Levine (2005) defines that financial development is the improvement of functions provided by the financial system including: accumulating savings, distributing capital to profitable investment opportunities, risk monitoring and management of these investments, diversify risks, create favorable conditions for goods exchange and service provision Each of the afore-mentioned functions of the financial system can affect savings and investment decisions as well as the effectiveness of allocated funds According to Bernanke, Gertler, and Gilchrist (1999), at some extent, financial development can reduce information asymmetry, reduce financial constraints, and promote risk sharing Financial development also helps the financial system to absorb shocks in the economy, reduce the amplification of adverse impacts of economic shocks, and reduce economic fluctuations and inequality in society Dorruci et al (2009) state that financial development is the ability of a country to effectively switch from a savings channel to an investment channel, including: (1) institute quality and regulations (2) size of financial markets, variety of financial instruments, easiness of access to individual investors (3) financial markets work well through their efficiency and liquidity Beside the above definition, Hartmann et al (2007) stated that financial development is a process of financial innovation as well as improving institutions and organizations in the financial system, reducing information asymmetry, increasing market perfection, increasing the ability for organizations engaged in contractual financial transactions, reduce transaction costs, increase competition So, the scope of financial development includes improvement, innovation of financial products, capacity building of entities and financial institutions From the above definitions, it can be understood that financial development is a process of improving the quantity, quality and efficiency of services and financial intermediaries This process involves the operation and interaction of various organizations and individuals in the financial market 2.2 Measurement of financial development Many economists in their studies have proposed different pooxies to measure financial development Most empirical studies on financial development have been around since the 1970s, often using the following three common indicators to measure the level of financial development:  Private credit to GDP  Domestic credit to GDP  Liquid liabilities (M3) to GDP In addition to the three common measures mentioned above, in modern studies related to financial development, researchers also use indicators relating to the development of the stock market, which is an important part of financial market such as:  Stock market capitalization to GDP  Stock traded, total value (% of GDP)  Stock market turnover ratio (%) Beside these methods, some researchers such as Boy and Jalad (2012) also use micro-data sources but this method has disadvantage of not having access to data for developing countries, where information disclosure and storage systems are not yet consistent, so this approach is not widely used From 2016, IMF suggests an experiement new measurement that is FD-index to evaluate the level of financial development This new index is presented here to recognize new trends and efforts of experts to measure the development of financial system Because it continues to be completed based on opnions of specialists, it is not used in this thesis 2.3 Importance of financial development in models of economic growth It can be seen that although theories of economic growth have different arguments, they aimed to clarify which factors affect and limitation of the growth From traditional models of Adam Smith and David Ricardo to modern endogenous ones nowadays, capital is always the key factor in all analysis King and Levine (1993a) indicates that the rate of capital accumulation and the efficiency of capital use are enhanced by the development of financial services A well-functioning financial system can promote economic growth not only by raising capital from savings for investment, but more importantly by allocating capital efficiently, thereby improving the productivity of economy 2.4 Empirical evidence of financial development and economic growth Previous empirical studies can be divided into two main trends as following: (1) Financial development has a linear relation with Economic growth; and has a positive effect: This trend has gained a lot of consensus and predominate in previous research papers Those who support this view argue that less developed financial system restricts economic growth Therefore, government policy must aim to encourage the development of the financial system (Schumeter and Opie,1934; Gurley and Shaw,1955; McKinnon 1973; Shaw,1973; and several researches later supporting this point of view such King and Levine (1993a,b), Levine (1997, 2003), Rajan and Zingales (1998), Levine and cộng (2000), Beck and Levine (2004), Beck et al (2000,2005) These scholars argue that financial development involves capital accumulation, which is the driving force for economic growth from the viewpoint of Neo-classical growth theory and Endogenous growth theory (2) Relationship between Financial development and Economic growth is non-linear; so in some extent, effect of financial development changes from positive to negative on economic growth: Cecchetti Kharroubi (2012); Arcand cộng (2012); Law, Azman-Saini, Ibrahim (2013); Rousseau Wachtel (2011) In 2014 there are many studies related to the nonlinear relationship between finance and growth Law and Singh (2014) also raise the question of whether financial development impedes economic growth after a country's financial development reaches a certain threshold Contributing to this topic is research of Owen and Temesvary (2014); Samargandi et al (2015) The number of officially published empirical studies on this topic in Asian countries is quite small Ang (2009) examined the role of financial intermediaries in Malaysia's economic growth The author 10 found that the more financial development is, the more economic growth is promoted This result is statistically significant for the Malaysian economy - an economy with rapid growth and many reforms to the financial sector For Asia, there are other studies of Jeanneney et al (2006) examined about China; Wong and Zhou (2010); Estrada et al (2010) Experimental studies in Vietnam have not been published internationally, except Anwar and Nguyen (2011) This topic in the actual context of Vietnam is mentioned mainly theoretically such as Phạm Minh Chính and Vương Quân Hoàng (2009), Vương Quân Hoàng (2010); Vương Quân Hồng, Phạm Minh Chính and Trần Trí Dũng (2010); Trương Văn Phước (2017) These analyses are presented in a theoretical form, not empirical evidence CHAPTER RESEARCH METHODOLOGY 3.1 Research method Panel data is used to analyze in this thesis for its advantage that combines both dimensions of countries and time Panel Threshold Regression model for panel data by Hansen (1999) is used This model is then developed by Wang (2015) in Stata software with the feature of Fixed Effect This method requires data to be completely balanced panel Based on King and Levine (1993 a,b) combining with threshold function in Law and Singh (2014), the threshold regression model in this thesis takes the following form: 𝐺𝑅𝑂𝑊𝑇𝐻𝑖𝑡 = 𝜇𝑖 + 𝛽1 𝐹𝐷𝑖𝑡 𝐼(𝐹𝐷𝑖𝑡 ≤ 𝜆) + 𝛿1 𝐼(𝐹𝐷𝑖𝑡 ≤ 𝜆) + 𝛽2 𝐹𝐷𝑖𝑡 𝐼(𝐹𝐷𝑖𝑡 > 𝜆) + 𝛾𝑋𝑖𝑡 +𝜃𝑡+ 𝜀𝑖𝑡 11 i = 1,…,N is country t = 1,…,T is time µi is the country-specific fixed effect 𝜃𝑡 is the time effect The level of financial development (FD variable) is the threshold variable used to split the sample into two regimes FD variable plays the role as explanatory variable λ is the unknown threshold parameter I(.) is the indicator function, which takes the value if the argument in parenthesis is valid, and otherwise This type of modelling strategy allows the role of finance to differ, depending on whether FD is below or above some unknown level of λ Effects of FD on the depending variable GROWTH is divided into different regimes, recognized by different β1 and β2 As a result, it is possible to capture the changing effect of the FD explanatory variable when passing the threshold value, and at the same time determine the value of the threshold For consistency of results, in this thesis, the author in turn adds other explanatory variables to the regression model Other methods to test the consistency of results are also carried out including: Use different proxies: the key explanatory variable in the model is FD – for the financial development – will be measured with different proxies: Private credit to GDP; Domestic credit to GDP; Liquid liabilities (M3) to GDP (Law Singh, 2014); Stock market capitalization to GDP; Stock traded, total value (% of GDP); Stock market turnover ratio (%) (Cihak cộng sự, 2012) 12 Analyze in sub-sample: Split the research sample into subsamples based on criteria of classifying country by income GNI per capita, World Bank 2017 Use another econometric method: Dummy variable is used to divide the research sample into regimes based on the threshold value found with Panel Threshold Regression This dummy variable takes the value if FD is over threshold, and otherwise Interactive variable formed between the dummy and FD is added into the model System – GMM method by Arellano and Bond (1991) is used to analyze effect of finance on growth before and after the threshold The application of another economic method GMM is to solve potential problems of the model such as endogeneity, heteroskedasticity, autocorrelation Furthermore, using GMM method as an alternative for analysis of the same research problem is also the way to consider whether the research results are consistent or not 3.2 Data The object of this study is economic growth and financial system development in 33 countries Data of countries in the sample are assessed on both aspects: bank based and stock market based However, when analyzing the level of financial development in terms of financial markets, the sample must be excluded Brunei, Maldives, Cambodia, Myanmar, and Taijikistan because there is no stock market in these countries; and excluded Armenia, Bangladesh, Kuwait, Kyrgyz Republic, Nepal, Mongolia because of no data in 2013-2016 That’s why analysis with stock market based data has only 22 countries in 2004-2016 13 Table 3.1 Variables in the research models Factor Economic growth Variable GROWTH Meaning GDP growth (annual %) privatecre domescre liq smcapliz Population Income Investment pop income invest Trade Inflation Institution Human capital tradeop infla inst mys Private credit to GDP Domestic credit to GDP Liquid liabilities (M3) to GDP Stock market capitalization to GDP Stock market turnover ratio (%) Stock traded, total value (% of GDP) Population growth (annual) GDP per capita Gross capital formation (% of GDP) Trade openness to GDP Inflation rate based on CPI Average score of index Average year of schooling hci Human Capital Index Financial development Source WDI % % % % WDI WDI GFDD GFDD % % GFDD GFDD % WDI WDI WDI % % % WDI WDI WGI UNDP year smturnover smtrade % UNDP Source: the author’s CHAPTER 4: RESEARCH RESULTS The sample includes 33 Asian economies in the period of 20042016 to make a balanced panel Descriptive statistics in Table 4.1 showing that Asian economies in the sample have average economic growth about 5,37% with maximum of 26,17% 14 Compared with developed economies in Europe and America, these growth rates are rather high thank for the fact that there are many emerging economies in the sample such as China, India, Japan, Indonesia, South Korea, Turkey, Iran, Saudi Arab, Russia, Singapore, and Thailand which have a rapid growth rate in the modern period However, the global financial crisis 2008 is in the research period, so it is inevitable that some markets could not maintain the high growth rate as before, and even decrease such as -14,15% (Armenia in 2009) The average GDP per capita of countries in the sample is 14 055,7 USD/year Table 4.1 Descriptive Statistics N Mean SD Min Max growth 429 5,377195 4,277762 -14,15 26,1702 pop 429 2,033399 2,440679 -0,8638 16,3316 income 429 14055,7 17567,18 491,6975 72670,96 invest 429 27,51565 7,944809 10,3775 58,1507 tradeop 429 94,68592 66,81454 0,1674 441,6038 infla 429 5,938118 5,431072 -4,8633 39,2664 goexp 429 13,68105 5,038939 3,4603 30,0035 inst 429 -0,2190224 0,6902128 -1,7516 1,5922 mys 429 8,415385 2,579076 2,7 12,8 hci 429 2,55965 0,597483 3,71 privatecre 429 58,65262 39,22993 3,1211 173,537 domescre 429 71,82900 59,13059 -10,1518 345,7219 liquid 429 65,41786 42,66564 6,7058 217,702 Source: the author’s 15 The results of Panel Threshold Regression are shown briefly in Table 4.2 confirm that in Asian countries, financial development is not only positive, it can also have a negative impact on economic growth in different value areas of the measure of financial development In another words, the relationship between financial development and economic growth is nonlinear; there appears a threshold value of financial development that, above this threshold, the impact caused by financial development changes compared to the previous one Table 4.2 Threshold value of Financial Development (bank-based) Financial development threshold Min Max Private credit to GDP 8,9762 8,4427 9,3103 Domestic credit to GDP 8,8641 8,1817 9,2651 18,4802 17,9976 19,6984 M3/GDP Source: the author’s Empirical results with the whole sample are similar with the ones in sub-samples, confirming that threshold value: Private credit should be 8,9762% of GDP; Domestic credit is 8,8641% of GDP; Liquid liabilities (or broad money M3) should be 18,0957% of GDP In the aspect of stock market, threshold value are as following: Stock market capitalization is 81,8477% of GDP; Stock market turnover ratio should be 27,3429%, stock market, traded value should be 51,2688% of GDP All results from bank-based data are significant, showing that in the regime under the threshold value, financial development enhances economic growth but in the over-regime, it shows negative effect 16 However, with stock market based data, financial development has positive correlation in the under-regime but in the over-regime, it still has positive effect with smaller level This implies that financial development still enhances economic growth when finance is over the threshold but the level is decreased Table 4.3 shows these findings Table 4.3 Threshold Regression with stock market based data FD= Stock market capitalization 81,8477 Threshold (estimator 95%) (72,4982; 81,9182) FD = Stock market turnover FD= Stock traded 27,3429 (26,1388; 27,8660) (44,6318; 52,8341) 51,2688 Under threshold 0,0450*** (0,000) 0,0707*** (0,000) 0,0438*** (0,000) Over threshold 0,0289*** 0,0081 0,0034 (0,000) (0,230) (0,415) Source: the author’s This result implies that developing and developing countries in Asia can still pursue economic growth targets by developing financial sector more to promote its effects on the economy.However, high level of financial development does not always beneficial for national economic growth Nowadays, an optiomal level of financial development which fosters sustainable growth should be taken into consideration for those countries 17 CHAPTER 5: SOLUTIONS AND RECOMMENDATIONS FOR FINANCIAL DEVELOPMENT TO ECONOMIC GROWTH IN ASIAN COUNTRIES The key issue here for policy is not extended operations of banking sector or stock market, but it is emphasized that solutions should focus on exploiting the effectiveness and positive role of financial development In this way, pursuing goals of Asian countries - which is sustainable economic growth, reducing the gap with developed countries in the world - could be achieved in long term Based on the results of this research, some solutions and recommendation are suggested in order to develop financial system properly, aiming to economic growth sustainably in long term as following: 5.1 Structure of financial system development and managing methods should be flexible and increase competitiveness The positive contribution financial system can make to economic growth process depends on its design and operation Therefore, the choice of structure to develop financial system should ensure the principle of flexibility and respect for the market Asian financial markets have unequal development, which does not create a real competitive environment for capital Low capital account liberalization, simple products, lack of popular derivative products also reduce the efficiency and make the market not attractive to foreign investors 18 The results of this thesis show that threshold values of financial development in Asian economies are not high What these countries need to in their financial system development strategy is not expansion in size or quantity, but must focus on in-depth financial development, increased efficiency and adding value The results also imply that there is a need to improve the effectiveness of monetary policy and the management of banking system operations in these countries Solutions are not discrete, but in an overall process of improving quantity, quality, and efficiency of services of financial intermediaries; relating to the operation and interaction of many different organizations and individuals in the financial market 5.2 Information transparency in the operation of the financial system Financial markets perform well, which is reflected in their efficiency and liquidity (Dorruci cộng sự, 2009) Meanwhile, the problem which exists for a long time, is the barrier in financial market of developing Asian countries is the information asymmetry This always happens in the process of mobilizing and using capital Therefore, ensuring the transparency of information in the operation of financial system should be a top goal in developing operational strategies, building a full legal frame and regulations for the operation of banking system and other intermediary financial institutions, for trading on capital markets and stock markets 5.3 Security for financial system In order to develop financial sector strongly and sustainably, for promoting economic growth, it is necessary to carry out financial safety supervision in the monetary market, banking system, stock 19 market, and other financial markets such as insurance market The most important thing is ensuring the ratio of available capital, periodically report to the market management agency For the operation of monetary market and banking sector: apply international standards such as Basel II, CAMELS to ensure safety in operation 5.4 Flexible monetary policy It is necessary to maintain flexible and adaptive monetary policy, strengthen fiscal situation and moderate credit growth to strengthen macroeconomic policy framework and enhance resilience to economic shocks For financial development, flexible monetary policies and sensitive solutions based on actual movements of the market are essential However, this development had better ensure optimization at an appropriate level to promote economic growth 5.5 Suitable level of financial development Nowadays, World Bank encourages UFA (Universal Financial Access) that is more accessing of people to the financial system is an important factor to help reduce poverty and improve economic growth So, up to 2020 UFA should be done globally Many countries including Vietnam have agreed to participate in this agreement Nevertherless, developing Asian countries shouls realize that financial development is a process of improving both the quantity, quality and efficiency of the financial system in relation to the operation and interaction of various organizations and individuals in the market They should develop the financial sector both in width and depth at a proper level Excessive financial development at all costs, the positive role and promote economic growth of the financial system will be eliminated 20 5.6 Modernization of financial system Strong, safe, efficient, and broadly developed infrastructure for finance will contribute to the efficiency of trading account services, expanding network, and diversifying payment products and services to meet the diversity of people needs 5.7 Increase role of entities participating in the financial system From experience of Singapore, countries whose financial system still low developed can learn how to make policy for financial development: It’s important to focus on develop for all entities in the market rather than creating specific incentives for governmentmanaged financial institutions This leads to fair environment, encouraging fair competition in the financial market, making right motivation for financial system to develop 5.8 Other suggestions The thesis also found conclusions regarding control variables Based on the results of this study to propose the following additional solutions:  Reduce government expenditure to make less budget deficit and ensure financial security Improve the efficiency of government expenditures  Infrastructure investment should be focused effectively, minimizing investment in wrong objectives Encourage Public-Private Partnership  Strengthening the role of supervision and consultancy of socio-political organizations; Build-up, supplement, amend the relevant provisions of the current laws 21  Promote structural reforms, including business and banking sector reforms; implement policies to promote trade liberalization  Continue to improve the legal framework, mechanisms and policies for the operation of the financial system, improve the institutional environment, attract human capital - i.e high-quality workers  For gainning growth in long run in developing Asian countries like Vietnam, there should be institutional reform in a comprehensive manner, developing legal regulations to suit the reality 5.9 Limitation and future research This study also cannot avoid some limitation: not many countries with enough data to be collected, so the sample size is small This also motivates the author to an extended research in future when overcoming difficulties in accessing data, expanding to larger observation sample Some variables in the model have not achieved statistical significance such as institutional variables, human capital, and inflation Therefore, a future research is to study additional factors for economic growth such as geopolitics, science and technology development, innovation, and political institutions to obtain insight understanding for developing economies with different political institutions such as China, Vietnam, and suitable with the world changing with Industrial Revolution 4.0 22 AUTHOR’S PUBLICATION 1) Phan Thị Bích Nguyệt & Phạm Dương Phương Thảo (2018) Limitation of Financial Development in Asian countries Banking Science and Training Review , No 199-December/2018 2) Phan Thị Bích Nguyệt & Phạm Dương Phương Thảo (2018) Threshold of Financial Development enhancing Economic Growth sustainably for Asian countries Review of Finance, Volume 2December/2018 3) Phạm Dương Phương Thảo (2018) Effects of Financial Development threshold to Economic Growth in Asian developing countries National Conference Proceedings 2018 “Accounting – Auditing – Finance in Vitenam: Current situation and solutions”, Finance Press, ISBN: 978-604-79-1828-7 4) Phạm Dương Phương Thảo (2018), Application of threshold model to effects of financial development to economic growth Science Conference Proceedings “Models in Finance: Theory & Practice”, UEH Publishing House, ISBN: 978-604-922-641-0 5) Phan Thị Bích Nguyệt & Phạm Dương Phương Thảo (2016) Economic growth and Financial Development in Asian developing countries Journal of Development and Intergration, 28(38), 6974 Research at University level (2015), member, “Effects of financial development to economic growth: Empirical study in Vietnam and some Asian countries” – Accepted with ranking of Good  ... development on growth For Asia, although many emerging economies have high growth rates and attract much attention of investors, this continent has not really been researched fully and completely... Reviewer : The dissertation will be defended at the committee at the school level at: time day month year The thesis can be found at the library: University... ensure long-term economic growth Moreover, other previous research in the same topic focused little on Asian Countries while they are potential regions developing strongly It is necessary to