This study investigates the determinants of financial development and private
sector credits for a panel of 85 developing and industrial countries using annual
data from 1980 to 2006. The results from the panel cross-sectional fixed effects
procedure suggest that an increase in the public sector credits and central
government debt leads to a decrease in private sector credits in low income and
lower middle income counties. For this group of countries, public sector credits,
albeit leading to a financial crowding out, are found to be enhancing financial
development. For the upper middle income and high income countries, private
sector credits are found to increase with public sector credits and financial
development and decrease with central government debt. Financial development
is affected adversely from inflation and positively from real GDP and public
sector credits in high income countries. In upper middle income countries both
real GDP and credits to public sector affect financial development positively. In
low income countries, on the other hand, public sector credits and inflation are
correlated positively with financial development.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12610098/index.pdf |
| Date | 01 September 2008 |
| Creators | Sogut, Erzen |
| Contributors | Ozmen, Erdal |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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