Abstract
This paper examines the asymmetric impact of financial development on economic growth in Mauritius during the period 1980–2021. The analyses were carried out using a nonlinear autoregressive distributed lag (NARDL) model in conjunction with additional complementary tests, including the NARDL bounds F-test for cointegration, the Brock-Dechert-Scheinkman (BDS) nonlinearity test, and the Wald test for asymmetries. The findings of the bounds F-test provide support for a nonlinear cointegration, whereas the BDS test shows the presence of nonlinearity in the data for all the variables. The Wald test results revealed an asymmetric relationship between financial development and economic growth in Mauritius, both in the short and long run. The NARDL findings show that, on average, positive changes in financial development lead to economic growth in the long and short run. Therefore, the paper encourages the government of Mauritius to continue pursuing policies aimed at the expansion of its financial sector since it has a significant positive impact on its economic growth.
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Articles in the same Issue
- Frontmatter
- Editorial
- Editors’ Note
- Articles
- Is Intending to Have Children Rightist? A Research Note on Political Ideology and Fertility Intentions
- From Gerontocratic Rule to Political Adultism: The Experiential Bias in Germany’s Aging Electoral Democracy and the Limitations of a Vote 16 Policy
- Demography, Economy and Policy Choices: The Three Corners of the Pension Conundrum
- Regular Articles
- Measures of Lifespan Length and Variation Using a Mixture Model: The Case of Egypt
- Asymmetric Impact of Financial Development on Economic Growth in Mauritius
Articles in the same Issue
- Frontmatter
- Editorial
- Editors’ Note
- Articles
- Is Intending to Have Children Rightist? A Research Note on Political Ideology and Fertility Intentions
- From Gerontocratic Rule to Political Adultism: The Experiential Bias in Germany’s Aging Electoral Democracy and the Limitations of a Vote 16 Policy
- Demography, Economy and Policy Choices: The Three Corners of the Pension Conundrum
- Regular Articles
- Measures of Lifespan Length and Variation Using a Mixture Model: The Case of Egypt
- Asymmetric Impact of Financial Development on Economic Growth in Mauritius