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Banking Credit Dynamics: Driving Economic Growth In Spain, France, And Romania – A Panel Data Analysis, 2000,2020

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  • Houssem E. HAMDAOUI
  • Maria-Teresa CANCELO

Abstract

This study examines the impact of banking credit on economic growth by analyzing panel data from Spain, France, and Romania from 2000 to 2020. The analysis includes variables that are negatively correlated with economic growth, such as bank deposits, net interest margin, public consumption, domestic credit, non-performing loans, and the ratio of domestic investment to GDP. However, negative coefficients do not necessarily indicate a negative effect, as other factors like omitted variables or multicollinearity may play a role. The study also finds that household debt and foreign direct investment are positively correlated with economic growth, although household debt is often a consequence of development rather than a direct cause. Additionally, the study highlights the role of non-performing loans in shaping credit availability based on their volume, emphasizing their importance in economic dynamics.

Suggested Citation

  • Houssem E. HAMDAOUI & Maria-Teresa CANCELO, 2024. "Banking Credit Dynamics: Driving Economic Growth In Spain, France, And Romania – A Panel Data Analysis, 2000,2020," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 24(2), pages 23-38.
    • Handle: RePEc:eaa:aeinde:v:24:y:2024:i:2_2
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    More about this item

    Keywords

    banking credit; economic growth; household debt; foreign direct investment; non-performing loans.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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