Banking sector development and Economic growth in south Asian countries: Dynamic Panel data analysis

Authors

  • Sumaira College of Economics and Management, Zhejiang Normal University, Zhejiang, China
  • Robeena Bibi School of Public Administration, Hohai University, Nanjing China

DOI:

https://doi.org/10.56556/jescae.v1i1.10

Keywords:

Banking sector development, economic growth, Difference GMM, System GMM, South Asian-4 countries

Abstract

This study explores the contribution of banking sector development to economic growth for a sample of four south Asian countries namely, Sri Lanka, Bangladesh, Pakistan and India. The study employed Fixed Effect (FE), Difference GMM and System GMM models to the data set for the period of 1980 -2017. The findings of the study indicates that bank based financial development index constructed of private sector credit, board money(M2) and domestic credit provided by banks affect economic growth significantly and positively almost in all models. The result approves that bank based financial development contribute to economic growth and augment growth level in the sample countries. The findings conclude that bank based financial development is important in boosting economic growth and suggests sampled countries of this study government’s channels and regulatory authority on further improvement on banking system in order to achieve higher economic growth.

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Published

2022-02-16
CITATION
DOI: 10.56556/jescae.v1i1.10

How to Cite

Sumaira, & Bibi, R. (2022). Banking sector development and Economic growth in south Asian countries: Dynamic Panel data analysis. Journal of Environmental Science and Economics, 1(1), 52–57. https://doi.org/10.56556/jescae.v1i1.10

Issue

Section

Research Article