| Title |
Banking Sector Depth and Economic Growth: Empirical Evidence from Vietnam |
| ID_Doc |
77754 |
| Authors |
Le, TTH; Le, TD; Tran, TD; Duong, QN; Dao, LKO; Do, TTN |
| Title |
Banking Sector Depth and Economic Growth: Empirical Evidence from Vietnam |
| Year |
2021 |
| Published |
Journal Of Asian Finance Economics And Business, 8, 3 |
| DOI |
10.13106/jafeb.2021.vol8.no3.0751 |
| Abstract |
The Vietnamese economy is a developing country that has brought many opportunities and challenges for the banking system. Commercial banks have developed strongly from quality to quantity, which plays a vital role in developing the economy. They play an important role in capital formation, which is essential for the economic development of a country. They provide financial services to the general public and businesses, ensuring economic and social stability and sustainable growth of the economy. Therefore, the relationship between bank depth and economic growth is of importance in research. This paper used a VAR (Vector Autoregressive Models) estimator for time series data models. The data is collected quarterly from the first quarter of the year 2000 to 2020. The study uses the VAR model to examine the causal relationships of economic growth, growth in money supply expansion, private sector capital requirement, and banks' domestic credit. The results indicate a general short-run relationship between banking sector depth and economic growth with a positive connection, but in the long term, the relationship between these variables can be reversed because of other macro factors. The findings show the two-way causal relationship between GDP growth and banking depth factors. This research contributes to policy-making by underlining the banking sector depth determinants when setting regulations and policies to develop the banking sector. |
| Author Keywords |
Banking Sector Depth; Economic Growth; VAR Model; Vietnam |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Emerging Sources Citation Index (ESCI) |
| EID |
WOS:000639112300074 |
| WoS Category |
Business |
| Research Area |
Business & Economics |
| PDF |
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