Assessing the impact of the banking sector performance on economic growth: An empirical study of East African countries
| Main Authors: | Richard Barfi, Blessed Kwasi Adjei |
|---|---|
| Format: | Article Journal |
| Bahasa: | eng |
| Terbitan: |
, 2020
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/4922904 |
Daftar Isi:
- the study assessed the impact of banking sector performance on economic growth in a panel study of 7 East African countries for the period of 1996 to 2017. In pursuit of achieving the study’s objective, it adopted panel data methodologies such as panel generalized linear model and granger causality test to perform its statistical analysis. The study found that banking sector performance has a negative and significant impact on economic growth in East African countries. Moreover, no evidence of a causal relationship between banks' return on assets and economic growth was established but there is unidirectional causality from economic growth to banks' return on equity. The study recommends further studies on the topic to either reject or validate its findings.