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Testing the inverted-U hypothesis on economies with different levels of financial development
Mini Dissertation (MBA)--University of Pretoria, 2018.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2019
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| _version_ | 1867613526038675456 |
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| access_status_str | Open Access |
| author2 | Herbst, Wynand |
| author_browse | Herbst, Wynand |
| author_facet | Herbst, Wynand |
| collection | Thesis |
| dc_rights_str_mv | © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (MBA)--University of Pretoria, 2018. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/68884 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:32.711Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/68884 Testing the inverted-U hypothesis on economies with different levels of financial development Herbst, Wynand ichelp@gibs.co.za Mamba, Mlungisi T. UCTD Mini Dissertation (MBA)--University of Pretoria, 2018. The study seeks to understand the role that financial development has had on economic growth by testing the inverted-U hypothesis on three different countries of different levels of financial development, namely, Germany, Chile and Kenya. South Africa is hailed as being one of the most financially developed economies. A stark contrast to a divided population, which is regarded as being one of the most unequal societies in the world. We test the inverted-U theory on countries with different levels of financial development to examine whether the theory of economic growth driven by financial development is applicable to South Africa. Using multivariate linear regression (MLR) and Vector Auto Regression (VAR), the research examines association and causality, if any, for a market-based (SMC) and a bank-based (PCE) induced growth. The study found that both SMC and PCE are highly correlated to the GDP, but that only SMC has a causal relationship to GDP, suggesting that financial markets are better conditioned to grow the economy than banks are, for all levels of economic development. This evidence suggests that economic growth is most likely innovation-driven and South Africa’s innovation barometer is sub-par. The lesson for South Africa is that the country must put more emphasis on innovation-based growth if it is to reduce poverty and increase growth. dm2019 Gordon Institute of Business Science (GIBS) MBA 2019-04-04T10:17:06Z 2019-04-04T10:17:06Z 30-Mar-19 2018 Mini Dissertation Mamba,M. T 2018, Testing the inverted-U hypothesis on economies with different levels of financial development, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/68884> http://hdl.handle.net/2263/68884 en © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Testing the inverted-U hypothesis on economies with different levels of financial development |
| title | Testing the inverted-U hypothesis on economies with different levels of financial development |
| title_full | Testing the inverted-U hypothesis on economies with different levels of financial development |
| title_fullStr | Testing the inverted-U hypothesis on economies with different levels of financial development |
| title_full_unstemmed | Testing the inverted-U hypothesis on economies with different levels of financial development |
| title_short | Testing the inverted-U hypothesis on economies with different levels of financial development |
| title_sort | testing the inverted u hypothesis on economies with different levels of financial development |
| topic | UCTD |
| url | http://hdl.handle.net/2263/68884 |