LÊ PHƯƠNG THÙY THE IMPACT OF THE BANKING SECTOR ON ECONOMIC STRUCTURE AND GROWTH EMPIRICAL EVIDENCE FROM SOUTHEAST ASIA GRADUATION THESIS MAJOR FINANCE – BANKING CODE 7340201 HO CHI MINH CITY, 202[.]
MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY - - LÊ PHƯƠNG THÙY THE IMPACT OF THE BANKING SECTOR ON ECONOMIC STRUCTURE AND GROWTH: EMPIRICAL EVIDENCE FROM SOUTHEAST ASIA GRADUATION THESIS MAJOR: FINANCE – BANKING CODE: 7340201 HO CHI MINH CITY, 2022 - - LÊ PHƯƠNG THÙY THE IMPACT OF THE BANKING SECTOR ON ECONOMIC STRUCTURE AND GROWTH: EMPIRICAL EVIDENCE FROM SOUTHEAST ASIA GRADUATION THESIS MAJOR: FINANCE – BANKING CODE: 7340201 SUPERVISOR NGUYỄN DUY LINH, Ph.D HO CHI MINH CITY, 2022 COMMENT OF THE SUPERVISOR Ho Chi Minh City,…./…./2022 Supervisor NGUYỄN DUY LINH iv ABSTRACT The main goal of this research is to investigate how the development of a banking sector (hereinafter "banking sector development") affects the growth, development, and structure of Southeast Asian economies The impact of the banking sector development on the development of the industrial, agricultural, and service sectors At the same time, the study investigates whether economic structure and growth aid in the development of the banking industry The study, which runs from 2008 to 2020, is based on data from Southeast Asian countries The Ordinary Least Squares method and the Dynamic Ordinary Least Squares method were used throughout the study, along with country-fixed effect and year-fixed effect The final results show that the relationship between the development of the banking system and economic development and growth is a two-way relationship in which the impact of agriculture, industry, and service sectors on the banking sector is significant However, in general, Southeast Asian countries should focus their resources on developing the banking sector and the industrial sector Keywords: agricultural sector; banking sector; economic structure; economic growth; industrial sector; service sector; Southeast Asia COMMITMENT As the author of this graduate thesis, I hereby declare that: My name is: Lê Phương Thùy Currently a student in class HQ6-GE05, majoring in Finance and Banking, Banking University of Ho Chi Minh City The topic of the internship report is: “The impact of the baning sector on economic structure and growth: empirical evidence from Southeast Asia.” This graduation thesis is done by me, with the help of the instructor, Mr Nguyen Duy Linh The content in this graduation thesis is made based on my research during my study time as well as from summarizing the knowledge I have learned while studying at the school The information, documents and data in this report are completely honest and fully quoted, specific and clear I take full responsibility for this pledge, respectfully! Ho Chi Minh City,…./…./2022 Author Lê Phương Thùy ACKNOWLEDGEMENTS First of all, I would like to thank the faculty of Finance, Banking University of Ho Chi Minh City In particular, I would like to thank Mr Nguyen Duy Linh, the lecturer who directly guided me during the internship and report writing process His enthusiastic guidance and practical suggestions helped me to complete this graduation thesis I would also like to express my heartfelt thanks to my father and mother, who have given up their time to care for me and who are usually busy from early morning till late at night, so that I have valuable time to concentrate on my thesis and don't have to worry about anything other than focusing on the thesis The report cannot avoid certain errors due to time constraints, reasoning level, and personal experience I eagerly await teacher feedback to help me enhance my research Finally, I would like to wish the teachers of the Faculty of Finance at the Banking University of Ho Chi Minh City good health and success in their teaching work I wish the leadership, uncles, and brothers and sisters at the Thu Duc branch good health, success in their work, and a dedication to the banking industry Ho Chi Minh City, …./…./2022 Author Lê Phương Thùy Table of Contents ABSTRACT i COMMITMENT ii ACKNOWLEDGEMENTS iii LIST OF ABBREVIATIONS viii LIST OF FIGURES ix LIST OF TABLES x CHAPTER 1: INTRODUCTION 1.1 The importance of research topic 1.2 An overview of the research 1.3 The research's objective 1.3.1 Overall objectives 1.3.2 Specific objectives 1.4 Research questions 1.5 Subject and scope of the study 1.6 Research methods 1.7 Research contribution 1.7.1 Literature gap 1.7.2 New contributions 1.8 Research structure CONCLUSION CHAPTER CHAPTER 2: THEORETICAL FRAMEWORK AND LITERATURE REVIEW 2.1 Theoretical framework 2.1.1 Banking sector development and economic growth 2.1.2 Banking sector development and economic structure 11 2.2 Literature review 12 2.3 Hypothesis development 16 CONCLUSION CHAPTER 22 CHAPTER 3: RESEARCH METHODS 23 3.1 Research process 23 3.2 Data and sample 24 3.3 Empirical methodology 29 CONCLUSION CHAPTER 32 CHAPTER 4: RESEARCH RESULTS 33 4.1 Descriptive statistics and univariate analysis 33 4.2 Banking sector in Southeast Asia overview 35 4.3 The effects of banking sector development on industrial sector, agricultural sector and service sector development 37 4.3.1 The effects of banking sector development on industrial sector development 37 4.3.2 The effects of banking sector development on agricultural sector development 40 4.3.3 The effects of banking sector development on service sector development 41 4.4 The effects of banking sector development on industrial sector, agricultural sector and service sector growth 43 4.4.1 The effects of banking sector development on industrial sector growth 44 4.4.2 The effects of banking sector development on agricultural sector growth 45 4.4.3 The effects of banking sector development on service sector growth 46 4.5 The effects of economic structure and growth on banking sector development 47 4.5.1 The effects of economic development on banking sector development 48 4.5.2 The effects of economic growth on banking sector development 50 CONCLUSION CHAPTER 54 CHAPTER 5: CONCLUSION 55 5.1 Conclusion 55 5.2 Limitation of the thesis and future research direction .58 CONCLUSION CHAPTER 60 REFERENCES 61 APPENDIX 69 ... to research: “Impacts of the banking sector on economic structure and growth: Empirical evidence from Southeast Asia? ?? 1.2 An overview of the research Southeast Asia has been one of the world''s... Determining the level of impact of the banking sector development on the growth of economic sectors - Determining the level of impact of the growth of industry, agriculture, and service sector on banking. .. Finance and Banking, Banking University of Ho Chi Minh City The topic of the internship report is: ? ?The impact of the baning sector on economic structure and growth: empirical evidence from Southeast