Investigating Effect of Bank Influence on Economic Growth in Developed and Developing Countries

A macroeconomic theories, capital accumulation is one of the main prerequisites for the growth of the national economy. In other words, the desirable use of labor in the production process depends to a large extent on the amount of existing capital, and capital accumulation plays an essential role in determining the amount of total output and output per capita of the labor force. In the first place, along with the expansion of the fields of increasing production and productivity in the national economy, the degree of progress of society with the amount of investment made in it, the relationship is consistent and appropriate. Many economic studies confirm that in the absence of sufficient capital, economic growth is facing a serious problem. Many developing countries also face a major shortage of capital. Since capital accumulation is one of the most important sources of continuous economic growth in a country, it is possible to accelerate the formation of capital through financial markets, including the banking system of the country. Financial markets are considered due to the crucial role of resource collection through small and large savings in the national economy, optimizing the circulation of financial resources, and directing them towards expenditures and investment needs in the productive sectors. The present study examines the effect of banking influence on economic growth in developed and developing countries. The statistical society of developing countries, developed countries, OPEC member countries, and BRICS countries was the time domain of the research years 2000-2016.

Investigating Effect of Bank Influence on Economic Growth in Developed and Developing Countries Keywords:

Bank Influence , Economic Growth , Developed and Developing Countries , Inflation