American International Journal of Social Science

Financial Sector Development and Economic Growth in Fiji: Evidence from an Updated Study: 1980-2011
Keshmeer Makun

Abstract
The relationship between financial sector development and economic growth has been intensively studied in economics. However, there are mixed evidence on the relationship, possibly due to omission of other relevant variables and use of small samples. This paper re-examines the relationship between financial sector development and economic growth in developing economy of Fiji for the period 1980-2011. Employing instrumental variable estimator and simultaneous equation system, we find evidence of cointegration when economic growth considered being dependent variable. In the long run financial sector developments have statistically significant and positive impact on economic growth.

Full Text: PDF