Banking sector development and economic growth in developing countries: a bootstrap panel Granger causality analysis
Khalil Mhadhbi (),
Chokri Terzi () and
Ali Bouchrika ()
Additional contact information
Khalil Mhadhbi: University of Gabes
Ali Bouchrika: University of Gabes
Empirical Economics, 2020, vol. 58, issue 6, No 9, 2817-2836
Abstract The purpose of this paper is to revisit the Granger causal relationship between banking sector development and economic growth for forty developing countries in the period 1970–2012. In order to capture the different aspects of banking sector development, we use two banking sector development indices and apply a panel bootstrap approach to Granger causality testing which takes into account cross-sectional dependence and heterogeneity issues. The empirical results show limited support for the supply-leading, demand-following and complementarity hypotheses, but provide evidence for a causal relationship between banking sector development and economic growth in twenty-five countries.
Keywords: Economic growth; Banking sector development; Cross-sectional dependency; Slope heterogeneity; Granger causality bootstrap (search for similar items in EconPapers)
JEL-codes: C22 C23 O43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00181-019-01670-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Banking sector development and economic growth developing countries: A bootstrap panel Granger causality analysis (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:58:y:2020:i:6:d:10.1007_s00181-019-01670-z
Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2
Access Statistics for this article
Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund
More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().