“Evaluating the Effect of Banking Reforms on Economic Growth: An Applied Study on the Libyan Economy for the Period 1990-2023”

Abstract

This study examines the impact of banking reforms on economic growth in Libya during the period 1990–2023. Using an applied econometric approach, the research analyzes the relationship between banking reform indicators, government credit, fiscal deficit, and public debt, and their combined effect on GDP growth. The results indicate that banking reforms alone have not generated a significant direct impact on economic growth. The fiscal deficit was found to have a positive and statistically significant effect, suggesting that expansionary fiscal policies contributed more to growth than banking reforms. The study concludes that the Libyan banking reforms were insufficient to produce tangible economic benefits, highlighting the need for stronger institutional frameworks, improved policy implementation, and integration of banking reforms with broader economic strategies.