IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04745604.html
   My bibliography  Save this paper

What Is The Role Of The Banking Sector In Economic Growth? Case of Tunisian Banks

Author

Listed:
  • Souad Hammami

    (MOFID-Université de Sousse)

  • Mounir Smida

    (MOFID-Université de Sousse)

Abstract

The objective of this article is to test the impact of a financial system inspired mainly by the banking sector on the economic growth in Tunisia. In this work uses annual data from 1980 to 2017. We have used four proxies of Financial Development (DF) with reference to the banking sector, namely Broad Money (M2), Domestic Credit to the Private Sector (DCPS), Credit domestic by banking sector (DCBS), and bank deposits (BDL). Control variables, such as trade (TRADE), government expenditure (govexp), and gross domestic savings (GDS), were added to the analysis. The results revealed that there is a positive relationship and statistically significant difference between financial development and economic growth. However, BDLs are positive but statistically insignificant, and M2 is negative and statistically insignificant. Also, unidirectional and bidirectional causality was found between the variables. Indeed, there is an urgent need for a robust banking sector to ensure long-term sustainable economic growth.

Suggested Citation

  • Souad Hammami & Mounir Smida, 2022. "What Is The Role Of The Banking Sector In Economic Growth? Case of Tunisian Banks," Post-Print hal-04745604, HAL.
    • Handle: RePEc:hal:journl:hal-04745604
    DOI: 10.51550/nijefr.71.24.31
    Note: View the original document on HAL open archive server: https://hal.science/hal-04745604v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04745604v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.51550/nijefr.71.24.31?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-04745604. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.