2018
DOI: 10.5296/ijafr.v8i4.14046
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Banking Sector Development, Inflation and Economic Growth in Asian Countries: A Panel Causality and Co-Integration Approach

Abstract: This study investigates the causal relationship between banking sector development, inflation, and economic growth for six Asian countries (Bangladesh, China, India, Malaysia, Pakistan and Sri Lanka) over the period of 1970-2016. Using a Pedroni panel, Kao co-integration test, Panel Granger causality-based Error Correction Model, Dynamic ordinary least square (DOLS), and Fully modified ordinary least square (FMOLS), this study finds that the development of the banking sector generally has a positive relationsh… Show more

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Cited by 2 publications
(4 citation statements)
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References 44 publications
(62 reference statements)
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“…Similarly, the beta coefficient of remittance has a positive and significant impact on banking sector development that exploring that remittance inflows are vital not only for economic growth but also for banking sector development. This finding is consistent with Herger et al ( 2008) and Nazir et al (2018). The study, therefore, urges the authorities to design and implement policies that directly and indirectly promote the inflow of remittances in Nepal.…”
Section: Discussionsupporting
confidence: 92%
See 1 more Smart Citation
“…Similarly, the beta coefficient of remittance has a positive and significant impact on banking sector development that exploring that remittance inflows are vital not only for economic growth but also for banking sector development. This finding is consistent with Herger et al ( 2008) and Nazir et al (2018). The study, therefore, urges the authorities to design and implement policies that directly and indirectly promote the inflow of remittances in Nepal.…”
Section: Discussionsupporting
confidence: 92%
“…In emerging economies, remittances enhance the number of deposits and credit which have a positive and significant influence on banking sector development in developing countries (Raza et al, 2014). According to Nazir et al (2018), findings are consistent across nations and indicate the need to improve institutional setups to increase remittance inflows, which will improve financial development.…”
Section: Literature Reviewmentioning
confidence: 82%
“…Similarly, the beta coefficient of remittance has a positive and significant impact on the development of the banking industry, exploring that remittance inflows are vital not only for economic growth but also for development of the banking industry. This finding is consistent with Herger et al (2008) and Nazir et al (2018). The study, therefore, urges the authorities to design and implement policies that directly and indirectly promote the inflow of remittances in Nepal.…”
Section: Discussionsupporting
confidence: 86%
“…In emerging economies, remittances enhance the number of deposits and credit which have a positive and significant influence on the development of the banking industry in developing countries (Raza et al, 2014). According to Nazir et al (2018), findings are consistent across nations and indicate the need to improve institutional setups to increase remittance inflows, which will improve financial development.…”
Section: Review Of Literaturementioning
confidence: 82%