Syndicated Loans and Economic Growth: Empirical Evidence from G7 Countries

International Research Journal of Finance and Economics, 2020

9 Pages Posted: 17 Jul 2020

See all articles by Mohammed Kalloub

Mohammed Kalloub

Ankara Yildirim Beyazit University

AHMED MUSABEH

KADIR HAS UNIVERSITY

Date Written: May 25, 2020

Abstract

This paper examines the impact of syndicated loans on economic growth in G7 countries (Canada, France, Italy, Germany, Japan, United Kingdom, and the USA) over the period between 2000 to 2017. Utilizing a panel data analysis along with several pre-tests to assure the validity of data, these tests involve multicollinearity test, stationary test, Hausman test, heteroscedasticity test, and cross-sectional dependence test. The main findings indicate that the growth of syndicated loans has positively affected economic growth in the G7 group. Moreover, the results came in line with previous literature regarding the effect of government expenditures, law enforcement, human capital, and financial stability on economic growth over the period in our sample. However, it is found that liberalization of trade has an adverse effect on economic growth.

Keywords: Syndicated loans, Economic growth, Panel data analysis

JEL Classification: G21, G24, G30

Suggested Citation

Kalloub, Mohammed and MUSABEH, AHMED, Syndicated Loans and Economic Growth: Empirical Evidence from G7 Countries (May 25, 2020). International Research Journal of Finance and Economics, 2020, Available at SSRN: https://ssrn.com/abstract=3635607

Mohammed Kalloub (Contact Author)

Ankara Yildirim Beyazit University ( email )

Cicek St. No 1 Ulus
Sciences Yildirim Beyazit University
Ankara, 06500
Turkey

AHMED MUSABEH

KADIR HAS UNIVERSITY ( email )

Istanbul
Turkey

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