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Enterprise credit, household credit and growth: New evidence from 126 countries

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  • Florian Léon

    (CREA, Université du Luxembourg)

Abstract

This paper attempts to distinguish the effects of household and enterprise credit on Economic growth. To do so, I create a new, hand-collected database covering 143 countries over the period 1995-2014 (126 countries are employed for econometric analysis). Estimation results confirm recent evidence documenting the absence of the effect of total credit to growth. Findings also show that household credit has a negative effect on growth, but I fail to provide robust support for a positive effect of business credit.

Suggested Citation

  • Florian Léon, 2016. "Enterprise credit, household credit and growth: New evidence from 126 countries," DEM Discussion Paper Series 16-17, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:16-17
    as

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    File URL: https://hdl.handle.net/10993/31291
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    Cited by:

    1. Léon, Florian, 2018. "Convergence of credit structure around the world," Economic Modelling, Elsevier, vol. 68(C), pages 306-317.
    2. Mirgul Nizaeva & Ali Coskun, 2019. "Investigating the Relationship Between Financial Constraint and Growth of SMEs in South Eastern Europe," SAGE Open, , vol. 9(3), pages 21582440198, September.
    3. Agne Setikiene & Mindaugas Butkus, 2021. "The Heterogeneous Impact of Financialisation on Economic Growth in the Long Run," JRFM, MDPI, vol. 14(5), pages 1-30, May.
    4. Paola Bongini & Małgorzata Iwanicz-Drozdowska & Paweł Smaga & Bartosz Witkowski, 2017. "Financial Development and Economic Growth: The Role of Foreign-Owned Banks in CESEE Countries," Sustainability, MDPI, vol. 9(3), pages 1-25, March.

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    More about this item

    Keywords

    Financial development; Household credit; Enterprise credit; Economic growth;
    All these keywords.

    JEL classification:

    • 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
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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