عنوان مقاله [English]
The banking sector development as one of the dimensions of the development of the financial sector plays an important role in strengthening the sense of depositing in the people to guide their low savings towards productive activities. The absorption of knowledge spillover (from the channel of import of intermediate and capital goods and direct foreign investment) facilitates the provision of innovative services to banking customers. As a result, absorption of knowledge spillover leads to the banking sector development due to increased productivity and profitability of the banking sector and the provision of better and cheaper services to banking customers. Therefore, this research investigates the effect of absorption of knowledge spillover on the ratio of domestic credit to private sector by banks to GDP as an indicator of the development of the banking sector in selected countries with abundance of natural resources during the period 1996-2015 by using generalized method of moments (GMM). The results show that the variable of absorption of knowledge spillover has a positive and significant effect on the index of development of banking sector. Also, consumer price index, real interest rate and GDP per capita have a positive and significant effect on the index of development of the banking sector of the Study Countries. But the exchange rate does not have a significant effect on the index of development of the banking sector.