Money Supply, Banking and Economic Growth: A Cross Country Analysis
The primary objective of the research is to understand the interactions between money supply, banking and economic growth for effective policy interventions and business decisions. Based on annual data for the time period (2004-2021), descriptive analysis, correlations, causality tests and panel da...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2024-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/15749 |
| _version_ | 1797216318996348928 |
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| author | Ahmad AlHarbi Wafa Sbeiti Moid Ahmad |
| author_facet | Ahmad AlHarbi Wafa Sbeiti Moid Ahmad |
| author_sort | Ahmad AlHarbi |
| collection | DOAJ |
| description |
The primary objective of the research is to understand the interactions between money supply, banking and economic growth for effective policy interventions and business decisions. Based on annual data for the time period (2004-2021), descriptive analysis, correlations, causality tests and panel data regressions are analyzed for a sample from India, Saudi Arabia and UAE to draw conclusions. The results favored the ‘intermediation theory’ and were contrary to the ‘credit creation’ theory of banking. It was observed that the GDP of a country can be efficiently explained by financial soundness, broad money, loans and deposits for a country. Also, that the GDP of a country influences banking loans and deposits but not vice versa. The monetary policy of the sample was questioned by the finding that GDP causes banking loans and banking deposits but not vice versa. This important finding will add to the effectiveness in business decision making.
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| first_indexed | 2024-04-24T11:44:04Z |
| format | Article |
| id | doaj.art-b0a14d2b77f046e8abaad8e0715599d0 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-24T11:44:04Z |
| publishDate | 2024-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-b0a14d2b77f046e8abaad8e0715599d02024-04-09T14:47:35ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382024-03-0114210.32479/ijefi.15749Money Supply, Banking and Economic Growth: A Cross Country AnalysisAhmad AlHarbi0Wafa Sbeiti1Moid Ahmad2Alasala Colleges, Saudi ArabiaAmerican University of Kuwait, Kuwait,Scholeio Education, NCR, India The primary objective of the research is to understand the interactions between money supply, banking and economic growth for effective policy interventions and business decisions. Based on annual data for the time period (2004-2021), descriptive analysis, correlations, causality tests and panel data regressions are analyzed for a sample from India, Saudi Arabia and UAE to draw conclusions. The results favored the ‘intermediation theory’ and were contrary to the ‘credit creation’ theory of banking. It was observed that the GDP of a country can be efficiently explained by financial soundness, broad money, loans and deposits for a country. Also, that the GDP of a country influences banking loans and deposits but not vice versa. The monetary policy of the sample was questioned by the finding that GDP causes banking loans and banking deposits but not vice versa. This important finding will add to the effectiveness in business decision making. https://www.econjournals.com/index.php/ijefi/article/view/15749Panel Data, Banking, Broad Money, Financial Soundness, GDP |
| spellingShingle | Ahmad AlHarbi Wafa Sbeiti Moid Ahmad Money Supply, Banking and Economic Growth: A Cross Country Analysis International Journal of Economics and Financial Issues Panel Data, Banking, Broad Money, Financial Soundness, GDP |
| title | Money Supply, Banking and Economic Growth: A Cross Country Analysis |
| title_full | Money Supply, Banking and Economic Growth: A Cross Country Analysis |
| title_fullStr | Money Supply, Banking and Economic Growth: A Cross Country Analysis |
| title_full_unstemmed | Money Supply, Banking and Economic Growth: A Cross Country Analysis |
| title_short | Money Supply, Banking and Economic Growth: A Cross Country Analysis |
| title_sort | money supply banking and economic growth a cross country analysis |
| topic | Panel Data, Banking, Broad Money, Financial Soundness, GDP |
| url | https://www.econjournals.com/index.php/ijefi/article/view/15749 |
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