THE ROLE OF BANKING IN ECONOMIC GROWTH IN INDONESIA

Medyawati, Henny and Nopirin, Nopirin and Sutopo, Bambang and Hermana, Budi THE ROLE OF BANKING IN ECONOMIC GROWTH IN INDONESIA. Skripsi program studi akuntansi. (Submitted)

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Abstract

The aims of this research are to analyze the influence of banking development indicators on economic growth in Indonesia and to examine the relationships between banking development and economic growth. VAR, a time-series econometric model used in this study, estimating three banking indicators that are assets, credits and third party fund, economic growth average per capita at constant price 2000 and four variables of economic growth in agriculture, industry, electricity and labor wage sectors. Based on the three-stage data processing, the research reveals empirical evidence that banking development affects the economic growth, though the influence is diminutive. This study comes into alignment with the research conducted by Demetriades and Siong Hook Law (2004) that financial development has larger effects on growth when institutional quality is high. Simulation result show that the modified model used is suitable to examine the impacts of banking indicators' shocks on economic growth.

Item Type: Article
Uncontrolled Keywords: economic growth; banking industries; VAR; assets; loans; third party funds
Subjects: A General Works > AI Indexes (General)
Divisions: Fakultas Ekonomi > Program Studi Akuntansi
Depositing User: Mr Reza Chandra
Date Deposited: 28 Feb 2014 09:02
Last Modified: 28 Feb 2014 09:02
URI: http://repository.gunadarma.ac.id/id/eprint/1126

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