Article

 

THE IMPACT OF SOCIAL BANKING ON ECONOMIC DEVELOPMENT (p.103-123)

by

Stefanos DOURTMES, INTERNATIONAL HELLENIC UNIVERSITY

Andreas ANDRIKOPOULOS, UNIVERSITY OF AEGEAN

Keywords : Social banking, Economic development, General least squares, Panel data set, Random effects model

JEL classification : G21, O16

Abstract

We investigate the association between social banking and economic development. We employed a random effects model to estimate panel regressions on annual GDP per capita growth and assess the variables that concern social banking and can affect economic development. We find statistically a significant relationship between social banking and economic development in developing countries. It seems that social impact and financial sustainability, even when achieved simultaneously, can be beneficial for the economy.