Open AccessThe contribution of the banking system to achieving economic growth – Econometric study (1962-2016)
Author(s) -
Habib GUENOUNI,
Abderrahmane AMEUR
Publication year - 2018
Publication title -
journal of finance and corporate governance
Language(s) - English
Resource type - Journals
eISSN - 2602-5655
pISSN - 2661-7501
DOI - 10.54960/jfcg.v2i1.17
Subject(s) - econometric model , work (physics) , economics , investment (military) , econometric analysis , bank credit , private sector , financial system , monetary economics , macroeconomics , business , economic growth , econometrics , mechanical engineering , politics , political science , law , engineering
Several economic studies have shown that the banking system has a positive effect on economic development, through its ability to transfer a large mass of savings resources to the productive investment needs of the private sector. This work has a purpose to study these demonstrations in the case of Algerian banks and its role in development. To arrive at the final result, we used an econometric method that helped us to study the impact of banking variables on economic growth - as an indicator of economic development - in Algeria during the period 1962-2016. We have found qs result of this work, that banking variables have a negative effect on economic growth, especially the credit variable, so for this, the banking role in Algeria is still far from achieving economic development.