Boosting Savings and Credit Fuels Economic Growth in Southeast Asia
The goal was to examine how financial development affects economic growth in ASEAN countries like Indonesia, Malaysia, and others. They looked at factors like domestic credit, savings, inflation, and exports to see their impact on the countries' economies. After analyzing the data using a method called Random Effect, they found that more credit from the financial sector and higher domestic savings help these countries grow economically. However, high inflation rates can have a negative effect on economic growth. On the bright side, healthy net exports (selling more to other countries than buying) can boost the economies of these countries.