Objectives of Economic Growth and Development

Goals of Economic Growth and Development The definition of economic growth includes the formation of physical capital, the formation of human capital, and the creation of innovation. In short, economic growth depends on the invested capital and amount and type of labor, and how they are used in production. The goal of achieving economic growth through economic policy is not necessarily to maximize GDP or GNP, but to improve and improve other values ​​that can not be measured by quality of life or GDP.

In other ways, in order to overcome these economic crises, structural adjustment from 2007 to 2009, with the objective of preventing economic growth and development, stable prices, stable exchange rates, unemployment prevention and even employment opportunities, A program (sap) was adopted. . These goals are achieved through a firm price structure and loose economic regulation. Deregulation is regarded as a major policy or strategy for revitalizing the economy. This is based on the fact that decisions to eliminate domination of residence for business and economic activities will promote competition, increase investment standards and allocate resources efficiently. The financial sector and the banking sector are regarded as oil that sustains economic development and continues to experience deregulation in various areas of the business.

Pradhan (2009) investigated the causal relationship between financial development and economic growth in India. The main purpose of his research is to determine the short-term and long-term dynamics between financial growth and economic growth. The joint integration test confirms that financial development has long-term relationship with economic growth. The Granger exam also confirmed that Indian financial development and economic growth are interdependent from 1993 to 2008, but from market capitalization to economic growth, foreign trade economic growth, money supply market capitalization and bank credit market Value is one way. Causal relationship. There is no causal relationship between trade and bank credit. In short, bi-direction between financial development and economic growth means that financial development can be used to accelerate economic growth, which means economic growth can be used to promote financial development in the economy.

The main purpose of this paper is to investigate the causal relationship between economic growth, stock market development and bank loans. The development of stock markets and bank loans are good for economic growth. Section 2 explains the specification of the model, develops integrated analysis of Johansen, analyzes vector error correction model, and suggests Granger causality test. On the other hand, the third part shows the experiment results. Finally, in Section 5, we summarize only brief explanations in this section, so we conclude this white paper.