Discussion Paper

No. 2015-61 | September 10, 2015
Types of Banking Institutions and Economic Growth: An Endogenous Growth Model


There is mixed support for the hypothesis that the banking sector is a channel for economic growth. While most studies on economic growth in Gulf Cooperation Council (GCC) countries have not distinguished between conventional banks and Islamic banks, this study contributes to the empirical literature by comparing the respective impacts of Islamic banks and commercial banks on economic growth among GCC countries during the period 2001–2009, bringing out policy implications. The main result of panel data regressions is that both conventional and Islamic banks have fuelled economic growth, with the latter having a more significant impact. These results contradict the findings of some single-country studies that have examined the impact of Islamic banking on economic growth.

Data Set

Data sets for articles published in "Economics" are available at Dataverse. Please have a look at our repository.

The data set for this article can be found at: http://dx.doi.org/10.7910/DVN/E2HKNO

JEL Classification

C2 G21 O53

Cite As

Khaled Elmawazini, Khiyar Abdalla Khiyar, Ahmad Al Galfy, and Asiye Aydilek (2015). Types of Banking Institutions and Economic Growth: An Endogenous Growth Model. Economics Discussion Papers, No 2015-61, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-61


Comments and Questions

Anonymous - Referee Report 1
September 15, 2015 - 10:29

The focus of the paper is an interesting topic for the Journal. However the methodological aspects of the paper are extremely weak. The epistemological position and approach to articulating the problem and methods (how data was gathered and analysed) is necessary. It is entirely unclear how the author reached to ...[more]

... the conclusion and policy implications or what reasoning has gone into them! What underlying assumptions and values are used to form these conclusions?

Khaled Elmawazini - Reply to Referee Report 1
October 05, 2015 - 09:29

see attached file

Anonymous - Referee Report 2
September 24, 2015 - 08:42

see attached file

Khaled Elmawazini - Reply to Referee Report 2
October 05, 2015 - 09:29

see attached file

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