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Title
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the effect of economic freedom on the bank performance
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Type
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JournalPaper
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Keywords
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Economic Freedom, Bank, Developed Countries, Developing Countries, Panel Data
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Abstract
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The banking sector is one of the important financial intermediaries in the economics. Improvement of the banking sector can achieve optimal allocation of financial resources. So it can be stated that banks and financial service providers are necessary in order to facilitate the economic growth. One of the factors that can affect on the banks operation is economic freedom. Economic freedom and freedom of private property rights can effect on the quality of financial institutions such as banks. Therefore, this paper attempts to compare and evaluate the influence of the economic freedom index on the performance of banks by panel data method in selected developed and developing countries in the period of 2001-2011. According to the results, the relative position of countries with higher degree of economic freedom index, have better financial performance. According to our estimation, economic freedom indexes have a positive effect on bank′s profitability in both of groups of countries.
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Researchers
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(Second Researcher), Abolfazl Shahabadi (First Researcher)
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