Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

How does Financial Development Affect the Employment? Evidence from Asean Countries

Author(s): Toan Ngoc Bui

This article focuses on analyzing the impact of financial development on employment in Asean countries. This is a topic that is very rare in the previous studies. Therefore, this research result is important not only for Asean countries, but also for other countries in the world. The research data was collected from 6 ASEAN countries during 2004-2017. Using the generalized method of moment (GMM) to estimate the research model, the author has found the first empirical evidence on the impact of financial development on employment in Asean countries. In particular, the domestic credit to private sector has a positive impact on employment. And also, the stock market capitalization has a negative impact on employment, this is a new finding of this research compared to the previous studies. Based on this base, ASEAN countries will have the basis to propose the policies to promote the financial development associated with increased employment more effectively.