Journal of Economics and Development Studies

Determinants of Financial Institution Developments during the Antebellum Illinois
Abdus Samad

Abstract
During 1843-1863 there was phenomenal growth of banking institution in Illinois andthe paper empirically explored the significant determinants of financial development, banks in particular. The empirical results show that the significant factors for bank development of the antebellum period were per capita GDP, per capita bank capital, exports, and per bank asset. Per capita GDP, per capita bank capital, exportswere positively related whileper capita bank assets were negatively related to bank development. The study finds that the developmentof bank number is inelastic with respect to per capita GDP, per capita bank capital, export, and per capita bank asset; and their elasticities were0.64, 0.84, 0.17, and -0.008 respectively.The policy impact of the findings is provided.

Full Text: PDF     DOI: 10.15640/jeds.v5n3a2