000K utf8 1100 $c2005 1500 eng 2050 urn:nbn:de:gbv:8-diss-15069 3000 Sillah, Bukhari M. S. 4000 Banking and economic growth : case of the Gambia$hChristian-Albrechts-Universität zu Kiel [Sillah, Bukhari M. S.] 4030 Kiel$nChristian-Albrechts-Universität zu Kiel 4209 This research advances four theoretical approaches in an attempt to relate the banking activities to the real economic activities. It starts with the Schumpeter’s circular flow of creditary production that argues that the banks start the production cycle for offering the credits that enable the entrepreneurs to purchase labor and capital. The banks increase the savings mobilization and allocate the scarce savings to the productive investments. Second, we develop a benchmark from the Broaddus’ competitive model to analyze the competitiveness and efficiency in the banking industry. The third theoretical approach incorporates a credit market in IS/LM analysis and discusses the credit constraint as an analogy to a quantity constraint of the neo-Keynesian theory. This approach also analyzes the impacts of the interaction between the monetary policy and the fiscal policy on the endogenous macroeconomic variables. We finally modify Tsurus’ model to show that banks’ mobilized savings could be spent on the maintenance of the banks rather than being channeled to the productive investments, and as a result a bank-based economy could perform worse than a nonbank-based economy. We then estimate and test the hypothetical relationships between the banking and the real economic activities, and estimate and analyze the banks’ credit market functions and the credit constraint hypothesis. We use Johansen Vector Error Correction Methods, VECM, for all the estimations, and hence the analysis is focused on the long run relationships and the adjustments towards the equilibrium. We also conduct an explorative survey into the public’s relationships with the banks. The research finds that the banks’ credit to the private sector is vital for the real economic activities of output and capital accumulation, it is found to be Granger causal for these activities, and it is a weakly exogenous variable in the equilibrium systems that do not include private sector investments; while, the bank liabilities are found to be an endogenous variable. The interest rate is found to slightly influence the decision of the public to save in the banks; the public see the credit facilities biased towards the consumption financing than investment financing. The lending interest rate has a small effect on the credit supply. The banks’ credit supply is inelastic with respect to the lending interest rate, and there is weak credit constraint in the credit market. The banking industry is found to be uncompetitive and inefficient; and the increased transaction costs of the bank credit market are associated with increased prices in the economy. These increased transaction costs are also found to cause the public to hold increased real money balances. The banks’ credit and lending capacity are found to depend on the private sector investments, increases in the private sector feed back onto both the banks’ credit and lending capacity. The banks lag behind the developments in the private sector; thus they are not promoters or engines of growth for the private sector. 4950 https://nbn-resolving.org/urn:nbn:de:gbv:8-diss-15069$xR$3Volltext$534 4961 https://macau.uni-kiel.de/receive/diss_mods_00001506 5051 330 5550 bank-based and non-bank based economies 5550 Banking and Economic growth 5550 Central Bank and Currency Board 5550 Cointegration 5550 Credit constraint 5550 Demand for and supply of banks' credits 5550 efficient allocation of resources by banks 5550 finance 5550 Financial Intermediation and Economic Activities 5550 Fiscal policy and Monetary policy 5550 Gambia 5550 Government Finance and Customs Contribution 5550 Groundnut 5550 Keynesian model with credit market 5550 Neo-Keynesian Analogy 5550 Neo-Keynesian theory 5550 population 5550 savings absorption 5550 Schumpeter 5550 Schumpeter's credit 5550 Schumpeterian model 5550 soil regeneration 5550 transactions costs 5550 Wassu