Estimated parameters of SEM using ML and Bayesian estimation
| Relationship | ML- SEM | B- SEM |
|---|---|---|
| Bank capital ← Bank investments | −0.926 | −0.918 |
| Bank capital ← Bank deposits | 0.263 | 0.264 |
| Bank capital ← Bank loans | −0.091 | −0.092 |
| Exports - imports ← Bank capital | −1.173 | −1.172 |
| Gross investment ← Bank capital | 0.599 | 0.605 |
| Private consumptions ← Bank capital | 0.859 | 0.864 |
| Government spending ← Bank capital | 0.014 | 0.015 |
| Relationship | ML- SEM | B- SEM |
|---|---|---|
| Bank capital ← Bank investments | −0.926 | −0.918 |
| Bank capital ← Bank deposits | 0.263 | 0.264 |
| Bank capital ← Bank loans | −0.091 | −0.092 |
| Exports - imports ← Bank capital | −1.173 | −1.172 |
| Gross investment ← Bank capital | 0.599 | 0.605 |
| Private consumptions ← Bank capital | 0.859 | 0.864 |
| Government spending ← Bank capital | 0.014 | 0.015 |
Source(s): Authors’ own work