TY - JOUR
T1 - The impact of the banking sector on economic structure and growth
AU - Tongurai, Jittima
AU - Vithessonthi, Chaiporn
N1 - Funding Information:
The authors wish to thank Brian M. Lucey (the editor) and two anonymous referees for helpful comments. They are also grateful to participants at the 30th Australasian Finance and Banking Conference, held in Sydney, for valuable comments on an earlier version of the paper. This work was supported by JSPS KAKENHI [grant number 15K03565 ].
Publisher Copyright:
© 2018 Elsevier Inc.
PY - 2018/3
Y1 - 2018/3
N2 - In this paper, we study the impact of banking sector development on changes in economic structure and growth. We argue that banking sector development has differential effects on industrial sector development and agricultural sector development. We test whether economic structure and growth foster banking sector development. To test our hypotheses, we construct a panel sample of all countries in the world during 1960–2016. We find that banking sector development has a negative effect on agricultural sector development but exerts no effect on industrial sector development. The negative effect of banking sector development on agricultural sector development is only observed for countries with high degrees of banking sector development. Our results further show that agricultural sector development exerts a negative effect on banking sector development while industrial sector development has a positive effect on banking sector development.
AB - In this paper, we study the impact of banking sector development on changes in economic structure and growth. We argue that banking sector development has differential effects on industrial sector development and agricultural sector development. We test whether economic structure and growth foster banking sector development. To test our hypotheses, we construct a panel sample of all countries in the world during 1960–2016. We find that banking sector development has a negative effect on agricultural sector development but exerts no effect on industrial sector development. The negative effect of banking sector development on agricultural sector development is only observed for countries with high degrees of banking sector development. Our results further show that agricultural sector development exerts a negative effect on banking sector development while industrial sector development has a positive effect on banking sector development.
KW - Agricultural sector development
KW - Banking sector development
KW - Economic growth
KW - Economic structure
KW - Industrial sector development
UR - http://www.scopus.com/inward/record.url?scp=85041568675&partnerID=8YFLogxK
U2 - 10.1016/j.irfa.2018.01.002
DO - 10.1016/j.irfa.2018.01.002
M3 - Article
AN - SCOPUS:85041568675
SN - 1057-5219
VL - 56
SP - 193
EP - 207
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
ER -
