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The Impact of Financial Development on Economic Growth

Author

Listed:
  • Haguiga, M.

    (University Ouargla, Algeria)

  • Amani, L.

    (University Ouargla, Algeria)

Abstract

This study aims to test the experimental relationship between the development of the financial sector and the economic growth of Algeria during the period 2005-2014. In order to reach this relationship, the researcher used the data of Panel models. The study included thirteen Algerian commercial banks. Using the PANEL model data, the results showed a positive impact on the development of the financial sector in stimulating the economic growth of Algeria during the period of the study. This effect is reflected in the banking sector through the volume of assets and the ratio of credit facilities granted to the private sector as a percentage of GDP to economic growth which reflects the role of banks in financing private sector activity and supports the hypothesis that there is an impact of financial development on Algeria's economic growth.

Suggested Citation

  • Haguiga, M. & Amani, L., 2019. "The Impact of Financial Development on Economic Growth," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(2), pages 107-116, May.
    • Handle: RePEc:ods:journl:v:8:y:2019:i:2:p:107-116
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    References listed on IDEAS

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    Cited by:

    1. Devarakonda, S. & Chittineni, J., 2019. "Does Insurance Promote Economic Growth? Evidence from BRICS Countries," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(3), pages 135-146, September.
    2. Yurii Hrinchenko, 2020. "The Case of the Aviation Industry Development under the Conditions of an Open Economy: A Theoretical Context," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(1), pages 28-41, March.
    3. Abdullah Mohammad Ghazi Al khatib & Bayan Mohamad Alshaib & Ali Mohamad Kanaan, 2023. "The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria," SAGE Open, , vol. 13(4), pages 21582440231, December.

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    More about this item

    Keywords

    economic growth; financial development; banking development; private sector loans; PANEL models;
    All these keywords.

    JEL classification:

    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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