Banking Sector Openness and Economic Growth
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.
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| Main Authors: | , |
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| Format: | Journal Article biblioteca |
| Language: | EN |
| Published: |
2008
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| Subjects: | Capital, Investment, Capacity E220, Macroeconomics: Production E230, Financial Markets and the Macroeconomy E440, Banks, Other Depository Institutions, Micro Finance Institutions, Mortgages G210, Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance O160, |
| Online Access: | http://hdl.handle.net/10986/5235 |
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