Bank bailouts and economic growth: Evidence from cross-country, cross-industry data

Dinger, Valeriya; Erman, Lisardo; Kaat, Daniel Marcel te

doi:10.1016/j.jfs.2022.100984

Cited by 3 publications

(1 citation statement)

References 60 publications

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“…The significant role of financial institutions in actual economic growth has been the subject of numerous discussions, including Asteriou and Spanos (2019), Dinger et al (2022); Naz and Gulzar(2022) and Ruiz(2018). Nonetheless, the results of the research are still ambiguous, particularly regarding the impact of Islamic finance and banks on economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Contribution of Islamic banks and macroeconomic variables to economic growth in developing countries: vector error correction model approach (VECM)

Kismawadi¹

2023

JIABR

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Purpose The purpose of this study is to examine the effect of Islamic banks (IBs) and macroeconomic variables on economic growth in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh. Design/methodology/approach Based on these criteria, 672 observations from 24 IBs in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh were chosen for further investigation. Time series analysis is a well-known method for determining if model variables are stationary and how long-term relationships function through cointegration analysis. This study uses impulse response function (IRF) and variance decomposition (VD) methodologies to demonstrate how each macroeconomic variable shock influences the short-term dynamic path of all system variables. Findings Islamic banking promotes economic growth, especially in Saudi Arabia, the UAE, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh. The findings of the Islamic banking VDC test have a direct and long-term effect on economic growth. Research limitations/implications The literature on this topic can be improved in a number of ways, including by adopting a more robust method to analyze over a longer time frame. By researching specific financing in various areas of the economy, one can gain a deeper understanding of Islamic financing. This will enable the identification of sectors that contribute to economic expansion. Future research should examine combining nations with pure Islam and dual-banking systems to acquire sufficient data. Practical implications This paper has practice and research implications. It recommends adopting the nation’s successful experiment with the Islamic banking system as a model for attaining economic growth through Islamic financing. To replicate this successful experiment, government-based decision-makers and monetary policy experts must collaborate to make Islamic money flows simple and rapid through financial channels that enhance economic growth. Originality/value The study of the contribution of Islamic banking to economic growth in developing nations, particularly those with the highest total assets (TAs) and total deposits (TDs) in the world, remains of modest value. To the best of the authors’ knowledge, this is the first study to empirically assess the impact of IBs in developing nations, particularly those with the highest TAs and TDs in the world, on economic growth as measured by gross domestic product (GDP).

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Section: Literature Reviewmentioning

confidence: 99%

Contribution of Islamic banks and macroeconomic variables to economic growth in developing countries: vector error correction model approach (VECM)

Kismawadi¹

2023

JIABR

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The Role of Banks in Promoting Post-disaster Economic Growth

Duqi

2023

Palgrave Studies in Impact Finance

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C: Financial Operations and Services

2022

World Banking Abstracts

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The article examines the connectedness on the returns and volatility among major cryptocurrencies. Using ten large and liquid cryptocurrencies from 2017 to 2021, results show that a structural change in the connectedness intensifies during the Covid-19 outbreak in 2020 as the market restructure is affected due to unprecedent monetary injections. Short term spillovers dominate for most periods. In the cryptocurrency market, Ethereum is more influential than Bitcoin. Short-term dynamics dominate during market upward swings. The study argues that the various participants in the cryptocurrency markets should monitor not only Bitcoin but also Ethereum and Bitcoin cash when making trading and investment decisions. (5 figures, 5 tables, references) 326/39*** Central bank digital currency: A review and some macro-financial implications Chen, H. and Siklos, P. L.

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Bank bailouts and economic growth: Evidence from cross-country, cross-industry data

Cited by 3 publications

References 60 publications

Contribution of Islamic banks and macroeconomic variables to economic growth in developing countries: vector error correction model approach (VECM)

Contribution of Islamic banks and macroeconomic variables to economic growth in developing countries: vector error correction model approach (VECM)

The Role of Banks in Promoting Post-disaster Economic Growth

C: Financial Operations and Services

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