2021-09-29T07:36:16Z

2021-09-29

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Economic development

Panel data set

The impact of Social Banking on Economic Development

2021-06-27

campus

School of Economics, Business Administration and Legal Studies, MSc in Banking and Finance

This dissertation was written as part of the MSc in Banking and Finance at the International Hellenic University. The significance of the financial sector for the economic development is a topic, frequently argued by a great number of researchers through the years. A considerable portion of the findings supports that the development of the financial sector has a beneficial impact on economic growth. Motivated by this association, we examined the impact of a specific part of the financial sector, the social banks. Although the concept is new and not widely enough spread yet, we retrieved figures from institutions located in 31 countries around the world. We built a panel data set comprising variables that reflect the activity of social banks in these economies and their domestic economic growth. Subsequently the sample was divided in two smaller subsamples, according the level of income in these countries, in order to restrict the heterogeneity of the comprised entities. After determining the model that we will use, we estimated the parameters to uncover the impact of social banking on economic development. The results were different for all of the three samples (whole sample and two subsamples). Lower income countries outperformed higher income countries in terms of economic growth and financial sector development. Furthermore, lower income countries produced more statistically significant results.

Archontakis, Fragkiskos

ihu