Does banking sector development promote economic growth? An empirical analysis for selected countries in Central and South Eastern Europe

Figures & data

Table 1. Descriptive statistics.

	GDPGROWTH	LGDPPC		RQM	IM	PC	EX	INF	INV	GE	RL
Mean	4.015610	6960.990		22.67174	7.903769	47.36631	51.89235	10.75760	25.95445	50.28221	0.21078
Median	4.878266	5386.390		15.16979	5.576633	43.68309	51.47830	5.651846	25.77043	51.00000	0.381491
Maximum	12.23323	27015.08		276.0042	216.3790	121.0435	86.85601	293.6788	40.39200	85.70000	1.466499
Minimum	−17.95499	354.0017		−11.08535	−1.372323	11.09819	12.31652	−1.129460	9.042188	0.000000	−1.296448
Std. Dev.	5.093933	5514.896		31.46589	17.11115	22.52736	15.12106	26.12299	5.359082	16.90767	0.760306
Skewness	−1.842847	1.117105		5.045906	11.23372	0.563827	0.005029	8.495113	0.188906	−0.285536	−0.235795
Kurtosis	7.241387	3.885766		36.65082	136.9096	2.847045	2.622642	8.777957	3.503210	2.599683	1.870920
Jarque-Bera	214.4381	39.23051		8382.429	125214.9	8.795195	0.967812	50776.15	2.689246	3.303307	10.16861
Probability	0.543902	0.987365		0.478912	0.175690	0.112307	0.616371	0.379273	0.260638	0.191733	0.206193
Observations	163	163		163	163	163	163	163	163	163	163

Source: Author calculation.

Table 2. The banking sector development and economic growth: dynamic panel regression.

	(1)	(2)	(3)
Const	166.541**	−37.047	−87.757**
	(0.016)	(0.324)	(0.018)
RQM	0.162**
	(0.012)
IM		−0.006
		(0.883)
PC			−0.415***
			(0.002)
LGDPPC	15.553*	−0.095	11.937**
	(0.071)	(0.985)	(0.027)
EX	0.027	0.203*	0.191
	(0.837)	(0.723)	(0.214)
INF	−0.044	−0.002	0.116**
	(0.270)	(0.925)	(0.345)
GVE	0.356*	0.159	0.219*
	(0.083)	(0.188)	(0.052)
INV	0.697**	0.895**	0.346*
	(0.038)	(0.016)	(0.081)
RL	−4.738	−2.245	7.702
	(0.811)	(0.862)	(0.452)
Countries	16	16	16
Observations	152	147	152
–Sargan test	0.428	0.357	0.479
−2nd. Order Correlation	0.9617	0.4421	0.2417

P-values in parentheses.

^*** ,

^** ,

^* denote statistical significance at the 1%, 5% and 10% level.

Source: Author calculation.