 Institutions, Policy and Banking Sector Development: A ReassessmentIoannis Filippidis and Constantinos Katrakilidis Czech Journal of Economics and Finance (Finance a uver), 2014, vol. 64, issue 6, 501-521 Abstract: This paper investigates the links between institutional quality and government policy in banking sector development, using data from 80 low-, middle- and high-income economies during 1985–2007. In order to investigate the effect of economic, political and social institutions on bank-based development, we employ dynamic panel techniques and, more specifically, the system-GMM estimator, which controls for endogeneity among variables. The results demonstrate that: i) economic institutional quality, and especially the legal dimension, is the main determinant for banking sector development; ii) social institutions have a greater impact for low- and middle-income countries, while political institutions have a greater impact for high-income countries; and iii) government policy, in terms of government size, is crucial regardless of the stage of economic development. Keywords: banking sector development; institutions; trade openness; size of government; panel data analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:64:y:2014:i:6:p:501-521 Access Statistics for this article More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC. |
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