Financial Sector Efficiency and Economic Growth: Evidence from Banking and Insurance Sectors in OECD Countries
Öz
This study examines the effect of financial efficiency in the banking and insurance sectors on economic growth in countries of the Organisation for Economic Co-operation and Development. The analysis uses annual country-level data for 2010-2021. A two-stage empirical strategy is employed. First, efficiency scores for the banking and insurance sectors are estimated through stochastic frontier analysis. Second, the effects of these scores on economic growth are examined across different points of the growth distribution using panel quantile regression. The findings indicate that insurance sector efficiency supports economic growth mainly at the lower and median growth quantiles. The effect of banking sector efficiency is more limited and becomes relatively more visible at the median quantile. Overall, the results show that the growth effect of financial efficiency varies across the growth distribution and that the banking and insurance sectors do not contribute to economic performance in the same way.
Anahtar Kelimeler
Financial Efficiency, Banking Sector, Insurance Sector, Economic Growth, Panel Quantile Regression
Destekleyen Kurum
No financial support was received from any institution during the preparation of this manuscript.
Etik Beyan
This study uses secondary and publicly available country-level data; therefore, ethics committee approval is not required.
Kaynakça
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