Financial Deepening, Economic Growth and Corruption: The Case of Islamic Banking
Piyadasa Edirisuriya ()
Review of Economics & Finance, 2017, vol. 8, 1-16
As Islamic banking is becoming popular among bank customers, attempts are made in this study to examine the relationship between the corruption level and financial market deregulation, which causes financial deepening, using data for Islamic banks in 14 countries. This study employs a panel data analysis and uses three variables to represent the corruption level: the World Bank¡¯s control of corruption index (Cor), Transparency International¡¯s corruption perception index (Cor-per) and Heritage Foundation¡¯s corruption perception data (Cor-hf). Using fixed effect regression, the results of this study support the viewpoint that there is no significant positive relationship between the corruption level and financial deepening in countries where Islamic banking is dominant. This finding could help policy makers and regulators to implement further deregulatory measures in these countries.
Keywords: Islamic banking; Deregulation; Financial deepening; Corruption; panel data analysis; Economic growth (search for similar items in EconPapers)
JEL-codes: A10 G10 D73 G18 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:bap:journl:170201
Ordering information: This journal article can be ordered from
17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada
Access Statistics for this article
Review of Economics & Finance is currently edited by H. Carlson
More articles in Review of Economics & Finance from Better Advances Press, Canada 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada.
Series data maintained by Carlson ().