This research makes use of the quantile regression methodology developed by Koenker and Bassett (1978) to look at the uneven impact of economic middleman improvement on financial progress in low- and high-income international locations. A 3-sector neoclassical progress mannequin composed of a consultant household sector, manufacturing sector, and the monetary middleman sector is constructed, and the equilibrium options decide the variables employed within the empirical mannequin. The empirical outcomes reveal an uneven relationship between monetary middleman improvement and financial progress. Monetary middleman improvement is the primary driving power of financial progress for high-income international locations solely, not for low-income international locations. General, this research means that international locations mustn’t develop monetary intermediaries indiscriminately within the pursuit of financial growth, particularly for low-income international locations. Our empirical findings have necessary coverage implications for regulators who’re particularly involved about international locations’ sustainable financial progress.
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