Investigating the Role of the Financial Intermediaries on Sustainable Development in Egypt: An Empirical Evidence

Abstract

This paper focusing on investigating the role of the financial intermediaries on the social development directly and indirectly through the economic development, which is a vital axe of the three main axes of the sustainable development, in Egypt during 12 years from 2006 to 2017. The researcher used multiple linear regression analysis by OLS method. The model tested the impact of the independent variables, on the dependent variables, which are the national income per capita, as a proxy of the poverty level, and the real GDP per capita, as a proxy of the economic development.

The research shows that the factors affect poverty significantly in Egypt are real GDP per capita, gross capital formation, banks deposits to GDP. Moreover, real GDP per capita is affected by Commercial bank branches (per 100,000 adults), Market capitalization of listed domestic companies (% of GDP), Monetary, Central Bank, Assets, Domestic Currency (% GDP), Domestic credit to private sector (% of GDP), and Banks Assets to GDP. These results illustrate that the financial intermediaries have both direct effect, and indirect effect on poverty through influencing the real GDP per capita.