Bank Credit and Short-Run Economic Growth: A Dynamic Threshold Panel Model for ASEAN Countries
BETA Working Paper 2020-48 (2020)
11 Pages Posted: 5 Feb 2021
Date Written: November 2, 2020
We investigate short-run nonlinear impacts of bank credit on economic growth in ASEAN countries. We find an inverted L-shaped relationship and a statistically significant threshold of 96.5%. Positive effects of bank credit expansion on short-run economic growth fade away after this threshold.
Keywords: Bank Credit, Economic Growth, Dynamic Threshold Estimation, ASEAN
JEL Classification: C23, E51, G21, O41
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