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Bank credit and economic growth: Short-run evidence from a dynamic threshold panel model

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  • Lay, Sok Heng

Abstract

This paper investigates short-run nonlinear impacts of bank credit on economic growth in 17 advanced economies from 1870 to 2013. An inverted U-shaped relationship and credit threshold of 135% is statistically and significantly identified in the post-World War II sample.

Suggested Citation

  • Lay, Sok Heng, 2020. "Bank credit and economic growth: Short-run evidence from a dynamic threshold panel model," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301610
    DOI: 10.1016/j.econlet.2020.109231
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    Cited by:

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    2. Florentina Moisescu & Nechita Daniela & Răgălie ConstanÈ›a, 2021. "Debtors' Perception Of Interest Rates Charged By Banks During The Covid-19 Pandemic. Case Study - Debtors From Cä‚Lä‚Raè˜I County," Management Strategies Journal, Constantin Brancoveanu University, vol. 51(1), pages 151-160.
    3. Ho, Sy-Hoa & Saadaoui, Jamel, 2022. "Bank credit and economic growth: A dynamic threshold panel model for ASEAN countries," International Economics, Elsevier, vol. 170(C), pages 115-128.
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    5. Klejda Gabeshi, 2022. "The Impact Of Credit Activity On The Economic Evolution Of The Developed Economies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 185-190, February.
    6. Sy-Hoa Ho & Jamel Saadaoui, 2020. "Bank credit and short-run economic growth: a dynamic threshold panel model for ASEAN countries," Working Papers of BETA 2020-48, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Ghosh, Saibal, 2023. "Does climate legislation matter for bank lending? Evidence from MENA countries," Ecological Economics, Elsevier, vol. 212(C).
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    More about this item

    Keywords

    Bank credit; Economic growth; Dynamic threshold estimation;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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