An empirical investigation of banking sector development and economic growth in a panel of selected SAARC countries
This study examine the relationship between banking sector development and economic growth in South Asian Association for Regional Cooperation (SAARC) over the period of 1980-2013 by entailing ordinary least square (OLS), two stages least square (TSLS), and panel TSLS fixed-effect model. Key banking...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2016-06-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1182.pdf
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| Summary: | This study examine the relationship between banking sector development and
economic growth in South Asian Association for Regional Cooperation (SAARC) over the
period of 1980-2013 by entailing ordinary least square (OLS), two stages least square
(TSLS), and panel TSLS fixed-effect model. Key banking sector development variables
include money and quasi money (RQM) and domestic credit to private sector by banks (PC)
have a positive and statistically robust effect on economic growth in all models. The study
concludes that no economy can develop without a substantial growth in the banking sector
and it is important to have a sound and rigorous banking system for building a sustained
economic growth. Therefore, the SAARC economies are suggested to focus on the
development of the banking sector for their long run growth. |
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| ISSN: | 1841-8678 1844-0029 |