Banking Sector Openness and Economic Growth

Nihal Bayraktar, Yan Wang

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Banking sector openness may directly increase growth by improving the quality of financial services and increasing funds available, or indirectly by improving the efficiency of financial intermediaries, both of which may reduce the cost of financing, in turn, increase capital accumulation and economic growth. The objective of this paper is to empirically reinvestigate these direct and indirect links, using a more advanced econometric technique (generalised method-of-moments [GMM] dynamic panel estimators). An illustrative model is presented to link financial market development with investment. The empirical results support the presence of direct and indirect links, thus encouraging countries planning to open their financial markets.

Original languageEnglish (US)
Pages (from-to)145-175
Number of pages31
JournalMargin
Volume2
Issue number2
DOIs
StatePublished - Jun 1 2008

Fingerprint

financial market
banking
economic growth
financial services
market development
capital accumulation
financial service
econometrics
efficiency
planning
costs
cost
Financial markets
Financing
Openness
Banking sector
Costs
Financial services
Financial market development
Generalized method of moments

All Science Journal Classification (ASJC) codes

  • Development
  • Economics, Econometrics and Finance(all)

Cite this

Bayraktar, Nihal ; Wang, Yan. / Banking Sector Openness and Economic Growth. In: Margin. 2008 ; Vol. 2, No. 2. pp. 145-175.
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Banking Sector Openness and Economic Growth. / Bayraktar, Nihal; Wang, Yan.

In: Margin, Vol. 2, No. 2, 01.06.2008, p. 145-175.

Research output: Contribution to journalArticle

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