Impact of Financial Intermediaries on Economic Growth

This book aims to analyse the relationship between financial development and economic growth. It focuses on the variable private credit as a percentage of GDP and its relationship with economic growth. In addition, the relationship between bank credit to all sector as percentage of GDP and economic growth is tested. The dissertation benefits from some key published articles and applies similar techniques (cross sectional and panel data analyses) in its empirical work. The findings with the updated data for 40 years and 71 countries confirms the positive relationship between financial development and economic growth with private credit as percentage of GDP. The empirical analysis using bank credit to all sector as percentage of GDP is however insignificant which highlights the importance of credit to private sector in the economy.