Enhancing Economic Sustainability: An Empirical Study in Banking and Finance Sector in Oman

The present paper analyzes the relationships between economic sustainability and productivity, capitalization and profitability in banking and finance sector in the Sultanate of Oman. The data was collected from the annual reports of 35 banks and financial institutions listed on Muscat Securities Market for a period of five years from 2011 to 2015. The data was analyzed using panel data regression. The regression results show that there is a statistically significant effect of market capitalization and productivity on economic sustainability. Further, the R2 value supports the significance of the regression model as dependable. Also, profitability does not have an impact on economic sustainability at 1% level. This means that the banks and finance institutions in Oman prefer to capitalize their profit.