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

Alphanumeric Journal

İsmailDurak¹  ErgünEroğlu² 

[1] Düzce University, Department of Quantitative Methods, School of Business;Istanbul University, Department of Quantitative Methods, School of Business;

关键词: banking sector depth;    economic growth;    panel data analysis;    participation banking;    trade openness;   

DOI  :  http://dx.doi.org/10.17093/alphanumeric.640213

来源: DOAJ

【 摘 要 】

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 19902016. 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.

【 授权许可】

Unknown