On the Banking Deepening and Economic Volatility Nexus in Emerging Countries: Evidence from a GMM Panel-VAR Approach

Meriem Sebai, Omar Talbi and Hella Guerchi Mehri
Additional contact information
Omar Talbi: University of Tunis El-Manar, TUNISIA
Hella Guerchi Mehri: University of Tunis El-Manar, TUNISIA

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 5, 430-442

Abstract: This study investigates the dynamic causal relationship between banking deepening and economic growth volatility in 38 emerging countries from 1985 to 2020.To accomplish this, a panel autoregressive vector within a generalized method of moments framework is employed.Furthermore, impulse response functions are utilized to scrutinize the reaction of banking deepening aftershocks on economic volatility and vice versa. Finally, the analysis extends to include forecast error variance decompositions of the variables. The results underscore compelling evidence indicating that positive shocks in banking deepening significantly contribute to heightened economic volatility. Conversely, nations characterized by elevated economic volatility tend to exhibit restrained progress in banking deepening. These findings emphasize the urgent need for policymakers to implement stronger financial regulatory measures, bolstering risk management protocols and oversight mechanisms.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... -issue-5/430-442.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... -panel-var-approach/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:8:y:2024:i:5:p:430-442

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().