The Nexus of Economic Growth, Trade Openness and Banking Sector Depth In OIC: An Application of Panel Data Analysis
This article is investigated the connections between economic growth, trade openness and banking sector depth, using a panel data set including seventeen countries in the Islamic Cooperation Organization (OIC), where participation and conventional banking co-exist, for the period 19902016. Using a m...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Istanbul University
2019-12-01
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| Series: | Alphanumeric Journal |
| Subjects: | |
| Online Access: |
http://alphanumericjournal.com/media/Issue/volume-7-issue-2-2019/the-nexus-of-economic-growth-trade-openness-and-banking-sect_g6iLhYH.pdf
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| Summary: | This article is investigated the connections between economic growth, trade openness and banking sector depth, using a panel data set including seventeen countries in the Islamic Cooperation Organization (OIC), where participation and conventional banking co-exist, for the period 19902016. Using a multivariate framework, it is primarily found that all the variables are not integrated of order one (I). Since the series are not stationary, cross-dependence tests and Westerlund (2007) cointegration analysis are performed to the series and it is determined that the series are cross-dependent and cointegrated. Then, the models are estimated with three estimators by writing the panel as panel ARDL model to determine the long-term and short-term relations. The results of the study indicate a general long-run equilibrium connection between economic growth, trade openness and banking sector depth as well as a short-run connection among these variables. Policy suggestions include those that will increase greater banking sector depth as well as promoted trade openness. |
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| ISSN: | 2148-2225 2148-2225 |