Banking sector openness and economic growth
Nihal Bayraktar and
Yan Wang ()
No 4019, Policy Research Working Paper Series from The World Bank
Abstract:
Banking sector openness may directly affect growth by improving the access to financial services and indirectly by improving the efficiency of financial intermediaries, both of which reduce the cost of financing, and in turn, stimulate capital accumulation and economic growth. The objective of the paper is to empirically reinvestigate these direct and indirect links using a more advanced econometric technique (GMM dynamic panel estimators). An illustrative model is presented to link financial market development with investment. The empirical results confirm the presence of direct and indirect links, and thus provide support for countries planning to open their banking sector for international competition.
Keywords: Banks&Banking Reform; Economic Theory&Research; Financial Intermediation; Achieving Shared Growth; Financial Crisis Management&Restructuring (search for similar items in EconPapers)
Date: 2006-10-01
New Economics Papers: this item is included in nep-ban, nep-dev, nep-fdg and nep-fmk
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Citations: View citations in EconPapers (14)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4019
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