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Financial Centres Index and GDP Growth

Author

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  • Sinan Esen
  • Korhan Gokmenoglu

Abstract

This study investigates the relationship between financial centres index and GDP growth of 20 countries with the world¡¯s largest GDP. In our sample each country is represented by just one financial centre. We tested many models through several panel approaches. Use of a fixed-effects model, fixed-effects (within) regression, random-effects GLS regression, random-effects ML regression, and empirical findings showed that the global financial centres index variable is highly statistically significant, and coefficients obtained from different estimations are very close to each other. Our findings support the idea that financial centres positively affect the GDP growth of countries.

Suggested Citation

  • Sinan Esen & Korhan Gokmenoglu, 2016. "Financial Centres Index and GDP Growth," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(4), pages 198-206, April.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:4:p:198-206
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    More about this item

    Keywords

    fixed-effects models; GDP growth; global financial centres index; random-effects models;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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