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The Nexus of Economic Growth, Trade Openness and Banking Sector Depth In OIC: An Application of Panel Data Analysis

İsmail DURAK
Ergün EROĞLU
Pages
205–238
Publication Date
2019-12-31
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Policy suggestions include those that will increase greater banking sector depth as well as promoted trade openness.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Öz This article is investigated the connections between economic growth, trade openness and banking sector depth, using a panel data set including seventeen countries in the Islamic Cooperation Organization (OIC), where participation and conventional banking co-exist, for the period 1990–2016.
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Key Findings & Data:Using a multivariate framework, It is primarily found that all the variables are not integrated of order one (I).
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Conclusion & Impact:Policy suggestions include those that will increase greater banking sector depth as well as promoted trade openness.
🔬Design:Modeling & Simulation
📍Scope:2016 Verileri
⚙️Variables:Anahtar Kelimeler Economic Growth · Trade Openness · Banking Sector Depth

Özet

Öz This article is investigated the connections between economic growth, trade openness and banking sector depth, using a panel data set including seventeen countries in the Islamic Cooperation Organization (OIC), where participation and conventional banking co-exist, for the period 1990–2016. Using a multivariate framework, It is primarily found that all the variables are not integrated of order one (I). Since the series are not stationary, cross-dependence tests and Westerlund (2007) cointegration analysis are performed to the series and it is determined that the series are cross-dependent and cointegrated. Then, the models are estimated with three estimators by writing the panel as panel ARDL model to determine the long-term and short-term relations. The results of the study indicate a general long-run equilibrium connection between economic growth, trade openness and banking sector depth as well as a short-run connection among these variables. Policy suggestions include those that will increase greater banking sector depth as well as promoted trade openness.

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Cite This Article

DURAK, İ., EROĞLU, E. (2019). The Nexus of Economic Growth, Trade Openness and Banking Sector Depth In OIC: An Application of Panel Data Analysis. Alphanumeric Journal, Cilt: 7 - Sayı: 2, 205–238. https://ajindex.com/articles/63492

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