Financial Sector Development and Sustainable Economic Growth in Regionally Co-Integrated Emerging Markets

Ritab S. Al-Khouri

A chapter in Issues in Corporate Governance and Finance, 2007, pp 345-360 from Emerald Group Publishing Limited

Abstract: This paper presents new evidence of the relationship between financial market development (banking sector) and economic growth for a set of seven Middle East and North African economies over the period 1965–2002. We find evidence that in six of the seven countries, banking-sector development Granger causes increases in economic growth. However, in three of those six countries, economic growth also Granger causes banking development. Our co-integration analysis reveals that there is a stable long-run equilibrium relationship between banking-sector development and economic growth for all our countries. However, based on vector error-correction models, there is limited evidence that banking-sector development boosts economic growth in the short run.

Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:afeczz:s1569-3732(07)12013-2

DOI: 10.1016/S1569-3732(07)12013-2

Access Statistics for this chapter

More chapters in Advances in Financial Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().