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Does bank profitability stimulate economic growth in the Arab region?
This study empirically investigates the impact of bank profitability, as a complementary measure of financial development, on growth in the Arab countries between 1985 and 2016. Using a generalized method of moments (GMM) estimation to test the impact of the bank profitability on growth, this study utilises two variables in the econometric model which are return on assets and return on equity. This study reveals that both variables of bank profitability are positive and significant. This confirms that the bank profitability, beside other financial development variables, has positive impact on the growth. This study points out some important implications based on this result.
History
Volume
16Issue
2Start Page
1End Page
14Number of Pages
14eISSN
1475-3693ISSN
1475-3685Publisher
Walter de Gruyter GmbHPublisher DOI
Peer Reviewed
- Yes
Open Access
- No
Acceptance Date
2020-06-29Era Eligible
- Yes