Bank Concentration and Economic Growth Nexus

Evidence from OIC Countries

  • Edib Smolo International University of Sarajevo

Abstract

This paper examines the relationship between bank concentration and economic growth in Organization of Islamic Cooperation (OIC) countries. This is done using the system GMM estimators on a panel data sample consisting of 41 countries and 650 observations. Our analysis reveals that bank concentration has negative impact on economic growth and this relationship is non-linear. Furthermore, the impact of bank concentration on economic growth is found to be dependent on the country’s income and corruption levels. Therefore, it seems reasonable to conclude that bank concentration has negative impact on the economic growth in OIC countries.

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Published
2020-11-18
How to Cite
Smolo, E. (2020). Bank Concentration and Economic Growth Nexus: Evidence from OIC Countries. Applied Finance Letters, 9, 81-111. https://doi.org/10.24135/afl.v9i2.206
Section
Articles submitted to regular issue