This dissertation assesses the role of the banking sector in the Lebanese economy throughout the country’s history with respect to its linkages with the real sector. I thereby focus on the credit market. It is shown that various external and internal factors have led to a credit market development on the supply-side that is not conducive to real sector growth. In particular, the period before the Lebanese civil war is characterised by funds flowing in from other Arab countries, which were not channelled into domestic long term investment but accrued to the trade and services sector or went abroad. Throughout the war and afterwards the share of the private sector in total credit declined substantially as the government crowded out private demand. It is concluded that only a shift of policy with a clear focus on the real sector’s needs can bring about the required economic development.
Inhaltsverzeichnis (Table of Contents)
- I. Introduction
- II. A Political Economy Approach to Finance and Banking
- Information-theoretic approaches
- The political economy perspective
- Hypothesis and Implications
- III. Credit Market Development in the pre-War period
- Spontaneous Emergence of Banking
- The Banking Sector as a Generator of External Rents
- Implications for the Process of Capital Accumulation
- IV. Endogenous Impediments to Credit Market Development after the War
- The Impact of the Civil War on the Banking Sector
- Endogenous Rents: The Government enters the Credit Market
- The Effects: Crowding Out and Opportunity Costs
- V. The Demand Side of the Credit Market
- Firms' Demand for Credit
- Other Sources of Finance: Internal Funds & Remittances
- VI. Conclusions and Policy Implications
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation examines the role of the banking sector in Lebanon's economic development, with a particular focus on the credit market and its links to the real sector. It investigates how various external and internal factors have influenced the credit market, specifically exploring its evolution before and after the Lebanese Civil War.
- The impact of external factors on the banking sector's development.
- The relationship between the banking sector and the real sector in Lebanon.
- The role of the banking sector in promoting economic growth.
- The challenges and opportunities facing the banking sector in Lebanon.
- The impact of government policies on credit market development.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction outlines the significance of the banking sector in Lebanon's economic history, particularly during the pre-war period and the aftermath of the civil war. It highlights the intricate link between politics and economics in Lebanon and raises key questions regarding the role of banks in both periods.
Chapter II establishes the theoretical framework for the analysis, introducing information-theoretic approaches and their limitations. It then presents a political economy perspective, laying the groundwork for the hypothesis and its implications.
Chapter III delves into the development of the banking sector before the civil war, exploring the spontaneous emergence of banking, the generation of external rents, and the implications for capital accumulation.
Chapter IV examines the impact of the civil war on the banking sector, focusing on endogenous rents created by government intervention in the credit market and the subsequent effects of crowding out and opportunity costs.
Chapter V analyzes the demand side of the credit market, examining firms' demand for credit and alternative sources of finance like internal funds and remittances.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this dissertation include the Lebanese banking sector, credit market development, economic growth, political economy, external and internal factors, pre-war period, post-war period, civil war, government intervention, crowding out, opportunity costs, firms' demand for credit, and internal funds.
- Citar trabajo
- MSc Development Economics Marco Rettig (Autor), 2004, The role of the banking sector in the economic process of Lebanon before and after the civil war, Múnich, GRIN Verlag, https://www.grin.com/document/81223
