Financial intermediation and the real sector in Indonesia

Abd. Ghafar Ismail, Wahyu Pratomo

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper examines the nature of the links between the maturity of financial intermediation and real sector that operated in Indonesia over the 1966-2002 period. It presents evidence on both the short- and long-run effects of the maturity of financial intermediaries on economic growth by resorting to recent developments in the theory of cointegrated process. An attempt is also made in this study to examine the Granger causality test to prove the leading role of the intermediation variables in the real sector activity. The results suggest an important role of financial intermediaries in the rapid transformation of the Indonesian economy.

Original languageEnglish
Pages (from-to)131-142
Number of pages12
JournalSavings and Development
Volume30
Issue number2
Publication statusPublished - 2006

Fingerprint

Granger causality test
maturity
Indonesia
economic growth
causality
economy
evidence
effect

Keywords

  • Economic growth
  • Financial intermediation
  • Real sector

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Ismail, A. G., & Pratomo, W. (2006). Financial intermediation and the real sector in Indonesia. Savings and Development, 30(2), 131-142.

Financial intermediation and the real sector in Indonesia. / Ismail, Abd. Ghafar; Pratomo, Wahyu.

In: Savings and Development, Vol. 30, No. 2, 2006, p. 131-142.

Research output: Contribution to journalArticle

Ismail, AG & Pratomo, W 2006, 'Financial intermediation and the real sector in Indonesia', Savings and Development, vol. 30, no. 2, pp. 131-142.
Ismail, Abd. Ghafar ; Pratomo, Wahyu. / Financial intermediation and the real sector in Indonesia. In: Savings and Development. 2006 ; Vol. 30, No. 2. pp. 131-142.
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