Table 1 Description of variables.

RGDP

Real gross domestic product is used as a measure of economic growth

K

Gross fixed capital formation is used as proxy of investment

POP

This represents the population the natural log of which is represented as lnPOP to yield population growth rate

\(\ln \frac{{M_{2} }}{\text{RGDP}}\)

It measures the depth of financial sector and has inducement to saving investment. It is calculated as the natural log of the ratio of M₂ to real GDP and expects the positive impact on growth and investment

\(\ln \frac{\hbox{CPS}}{\hbox{RGDP}}\)

This measure stimulates the more credit to private sector and provides risk management and mobilizing savings. It is obtained as the natural log of the ratio of private sector credit to real GDP with the expectation of positive impact on explained variables

T

This concept is also used for economic globalization as a proxy variable and is used here as a control variable. It is calculated as the ratio of the sum of real exports and imports to real GDP with natural log and is supposed have positive impact on the economy

CPI

This is defined as log CPI, to capture the rate of inflation