Theoretical and Applied Economics
No. 2 / 2016 (607), Summer
An empirical investigation of banking sector development and economic growth in a panel of selected SAARC countries
COMSATS Institute of Information Technology, Abbottabad, Pakistan
Malik Fahim BASHIR
COMSATS Institute of Information Technology, Abbottabad, Pakistan
Abstract. 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.
Keywords: Banking Sector Development; Economic Growth; SAARC.
Contents
- The prerequisites of social development when planning for decentralization
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Teodora I. BIŢOIU
Dragoş DINCĂ
- Testing the validity of the Feldstein-Horioka Puzzle:
New evidence from structural breaks for Turkey
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Ahmet KOSEOGLU
Ali Gokhan YUCEL
- The role of institutional pressures in developing countries. Implications for IFRS
Cătălina Florentina PRICOPE
- Children’s health insurance coverage in the United States:
The role of parents’ ethnicity and immigration status
Swarn CHATTERJEE
- An empirical investigation of banking sector development
and economic growth in a panel of selected SAARC countries
Javed AHMED
Malik Fahim BASHIR
- A common agency within bureaucracy
Nadide Banu OLCAY
- From public services to networks of social enterprises.
Strategic trends for South-Eastern Europe
Ani MATEI
Carmen SĂVULESCU
Corina-Georgiana ANTONOVICI
- The relationship between inclusive growth,
inequality and poverty in Africa
Mohamed BEN AMAR
Nahed ZGHIDI
- Bankruptcy prediction based on the debt ratio
Daniel BRÎNDESCU-OLARIU
- The effects of saving-investment gap
on economic growth in developing countries:
A clustering and panel data analysis
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Tugba AKIN
Sedat ALATAS
- Impact of educational expenditure on economic growth
in major Asian countries: Evidence from econometric analysis
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Pradeep Kumar DAS
Kalandi Charan PRADHAN
- Developing a financial inclusion index
and inclusive growth in India
Susanta Kumar SETHY
- Examining the determinants of FDI inflows in India
Shiba Shankar PATTAYAT
- A review of corruption based on the social and economic
evolution of Ancient Greece and Ancient Rome
Ciprian ROTARU
Dumitru-Alexandru BOD
Raluca GEORGESCU
- Estimating the exchange rate in the context of Romania's
integration in the Eurozone
Laura Mădălina PÎRŞCOVEANU