On Financial Development and Economic Growth in the Arab Republic of Egypt

This paper discusses the evolution of the Egyptian banking sector and the main trends in financial development in the Arab Republic of Egypt. The paper examines empirically the relationship between the development of the financial sector and econom...

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Main Authors:	Mohieldin, Mahmoud, Hussein, Khaled, Rostom, Ahmed
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	TIME SERIES MODEL AUTOREGRESSION DISTRIBUTED LAG MODEL BANKING EMERGING MARKET ECONOMIES ECONOMIC GROWTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS ACCESS INDEX ACCESS TO FINANCE
Online Access:	http://documents.worldbank.org/curated/en/706381568308016417/On-Financial-Development-and-Economic-Growth-in-the-Arab-Republic-of-Egypt http://hdl.handle.net/10986/32415

id	okr-10986-32415
recordtype	oai_dc
spelling	okr-10986-324152022-09-20T00:14:35Z On Financial Development and Economic Growth in the Arab Republic of Egypt Mohieldin, Mahmoud Hussein, Khaled Rostom, Ahmed TIME SERIES MODEL AUTOREGRESSION DISTRIBUTED LAG MODEL BANKING EMERGING MARKET ECONOMIES ECONOMIC GROWTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS ACCESS INDEX ACCESS TO FINANCE This paper discusses the evolution of the Egyptian banking sector and the main trends in financial development in the Arab Republic of Egypt. The paper examines empirically the relationship between the development of the financial sector and economic growth in Egypt between 1980 and 2016. It draws comparisons based on critical financial indicators between Egypt and selected emerging markets and developing economies, using a new data set of financial development indexes released by the International Monetary Fund. Econometric time-series modeling of bivariate regressions for real growth per capita and measures of financial development, to assess the relationship between financial development and economic growth in Egypt, yields three specific findings. First; there is a strong association between real growth per capita and financial development measured. Second; access to and the efficiency of banking services are not associated with real per capita income. Third, the Financial Markets Access Index—which compiles data on market capitalization outside the top 10 largest companies and the number of corporate issuers of debt—indicates that there is a robust association with real per capita gross domestic product. The main policy implications suggest that there should be a stronger focus on promoting a more proactive role for the financial services industry in Egypt. There is an especially critical role for bank financing to support the private sector to maintain an inclusive growth momentum. Further development of the capital market will promote the sustainability of such economic growth. 2019-09-18T21:08:02Z 2019-09-18T21:08:02Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/706381568308016417/On-Financial-Development-and-Economic-Growth-in-the-Arab-Republic-of-Egypt http://hdl.handle.net/10986/32415 English Policy Research Working Paper;No. 9008 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Egypt, Arab Republic of
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TIME SERIES MODEL AUTOREGRESSION DISTRIBUTED LAG MODEL BANKING EMERGING MARKET ECONOMIES ECONOMIC GROWTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS ACCESS INDEX ACCESS TO FINANCE
spellingShingle	TIME SERIES MODEL AUTOREGRESSION DISTRIBUTED LAG MODEL BANKING EMERGING MARKET ECONOMIES ECONOMIC GROWTH FINANCIAL DEVELOPMENT FINANCIAL MARKETS ACCESS INDEX ACCESS TO FINANCE Mohieldin, Mahmoud Hussein, Khaled Rostom, Ahmed On Financial Development and Economic Growth in the Arab Republic of Egypt
geographic_facet	Middle East and North Africa Egypt, Arab Republic of
relation	Policy Research Working Paper;No. 9008
description	This paper discusses the evolution of the Egyptian banking sector and the main trends in financial development in the Arab Republic of Egypt. The paper examines empirically the relationship between the development of the financial sector and economic growth in Egypt between 1980 and 2016. It draws comparisons based on critical financial indicators between Egypt and selected emerging markets and developing economies, using a new data set of financial development indexes released by the International Monetary Fund. Econometric time-series modeling of bivariate regressions for real growth per capita and measures of financial development, to assess the relationship between financial development and economic growth in Egypt, yields three specific findings. First; there is a strong association between real growth per capita and financial development measured. Second; access to and the efficiency of banking services are not associated with real per capita income. Third, the Financial Markets Access Index—which compiles data on market capitalization outside the top 10 largest companies and the number of corporate issuers of debt—indicates that there is a robust association with real per capita gross domestic product. The main policy implications suggest that there should be a stronger focus on promoting a more proactive role for the financial services industry in Egypt. There is an especially critical role for bank financing to support the private sector to maintain an inclusive growth momentum. Further development of the capital market will promote the sustainability of such economic growth.
format	Working Paper
author	Mohieldin, Mahmoud Hussein, Khaled Rostom, Ahmed
author_facet	Mohieldin, Mahmoud Hussein, Khaled Rostom, Ahmed
author_sort	Mohieldin, Mahmoud
title	On Financial Development and Economic Growth in the Arab Republic of Egypt
title_short	On Financial Development and Economic Growth in the Arab Republic of Egypt
title_full	On Financial Development and Economic Growth in the Arab Republic of Egypt
title_fullStr	On Financial Development and Economic Growth in the Arab Republic of Egypt
title_full_unstemmed	On Financial Development and Economic Growth in the Arab Republic of Egypt
title_sort	on financial development and economic growth in the arab republic of egypt
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/706381568308016417/On-Financial-Development-and-Economic-Growth-in-the-Arab-Republic-of-Egypt http://hdl.handle.net/10986/32415
_version_	1764476501508489216

On Financial Development and Economic Growth in the Arab Republic of Egypt

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