Analyzing the role of Banks and the Financial Market as sources of Financing in the Economic Growth in Syria during the crisis

Abstract

The aim of the research is to highlight which of the sources of financing in Syria (financing through the stock exchange or financing through the banking sector) has a greater role in raising the economic growth rate in Syria, within the period (2016-2023) and on a monthly basis. To achieve this goal, the statistical study was conducted using the VAR model as a kind of nonlinear model suitable for this research. The results of the study showed that the volume of credit facilities provided by banks has a greater role in supporting economic growth compared to the role of the financial market in Syria, due to the ease of obtaining financing through banks, the lack of full knowledge and the absence of

investment culture in the Damascus Stock Exchange. In the end, the researcher presents many recommendations that he hopes it will be adopted by the custodians of the two sectors to contribute in improving the economic growth rate in Syria.