Ghannouchi, Walid and Radić, Nemanja (2011) Banking efficiency and Economic growth in the MENA region. Centre for EMEA Banking, Finance and Economics Working Paper Series, 2011 (14). pp. 2-25.
CentreforEMEABankingFinanceAndEconomicsWorkingPaperSeries No.14 11.pdf - Published Version
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This paper examines the nexus between cost efficiency and economic growth in the Middle East and North Africa region. We apply a causality analysis between cost efficiency and financial deepening using the Generalized Methods of Moments and our findings show a significant and positive causality and reverse relationship between financial deepening and banking productivity. We introduce a set of control variables associated with the long run growth and find an interesting interaction with banking productivity and financial deepening suggesting that efforts should be focusing on the investments’ efficiency and the increase of regulation to spur a more stable financial system and foster financial deepening in the future.
|Uncontrolled Keywords:||Centre for EMEA Banking, Finance and Economics Working Paper Series, Financial development; Economic growth; MENA, Causality analysis|
|Subjects:||300 Social sciences > 330 Economics|
|Department:||Guildhall School of Business and Law|
|Depositing User:||David Pester|
|Date Deposited:||20 Apr 2015 11:09|
|Last Modified:||20 Apr 2015 11:09|
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