Template-Type: ReDIF-Article 1.0
Author-Name: Boris I. Alekhin
Author-Email: b.i.alekhin@gmail.com
Author-Workplace-Name: Russian State University for the Humanities, Moscow 125993, Russia
Title: Russia’s Financial Structure and Economic Growth
Abstract: This article is about finance — growth nexus with application to Russia. 57 quarterly observations in 2003-2017 were used to test four popular hypotheses on this subject. The author employed econometric methodology which included vector auto regression (VAR) analysis, stationarity tests, Johansen-Juselius cointegration test, Granger causality test, weak exogeneity tests and variance decomposition. The variables in the our VAR-model are found to be non-stationary and cointegrated. Russia’s economic growth seems to be Granger caused by the proliferation of bank credit to local enterprises and (to a much lesser degree) issuance of shares. In the medium-term prospective the stock market is projected to replace bank finance as a main influence on economic growth.
Classification-JEL: O16, G15, G28
Keywords: finance, economic growth, cointegration
Journal: Finansovyj žhurnal — Financial Journal
Pages: 71-83
Issue: 5
Year: 2017
Month: October
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2017/5/articles/fm_2017_5__06.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:170506:p:71-83