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مجلة البحوث المالية والتجارية
مجلة البحوث المالية والتجارية
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Financial development is a fundamental pillar for achieving sustainable economic growth, as it contributes to efficient resource allocation, improved risk management, and encourages innovation. In South Korea, rapid economic transformations have played a significant role in enhancing the development of the financial system, leading to overall economic performance improvements. This study aimed to analyze the impact of financial development on promoting economic growth in South Korea using the Autoregressive Distributed Lag (ARDL) model and cointegration bounds testing. The study was based on annual data from 2000 to 2022 and utilized variables such as Gross Domestic Product (GDP), investment (INV), government expenditure (GX), and foreign trade (TRADE) to analyze long-term and short-term relationships. The study included unit root tests, causality tests, and cointegration relationships using the Bound Test, in addition to estimating the ARDL model for long-term and short-term relationships. The results showed a positive and significant relationship between financial development and economic growth in South Korea, indicating that enhancing the financial sector can contribute to achieving sustainable economic growth. The study concluded that improving financial infrastructure and enhancing financial management can boost resource allocation efficiency and support longterm economic growth. One of the lessons learned is that the Arab Republic of Egypt can draw inspiration from South Korea's experience in developing an advanced financial system that supports innovation and increases financial market efficiency, contributing to enhanced economic growth and attracting national and international investments. Keywords: Financial Development, Economic Growth, Financial Markets, Foreign Direct Investment (FDI), South Korea, (ARDL) Model.
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