EconPapers    
Economics at your fingertips  
 

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: 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)
Date: 2020
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.

Related works:
Working Paper: Banking sector development and economic growth developing countries: A bootstrap panel Granger causality analysis (2017) Downloads
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: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

DOI: 10.1007/s00181-019-01670-z

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 ().

 
Page updated 2021-09-10
Handle: RePEc:spr:empeco:v:58:y:2020:i:6:d:10.1007_s00181-019-01670-z