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

See all articles by Sy Hoa Ho

Sy Hoa Ho

Bank for Investment and Development of Vietnam (BIDV); Duy Tan University

Jamel Saadaoui

University of Strasbourg

Date Written: November 2, 2020

Abstract

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

Suggested Citation

Ho, Sy Hoa and Saadaoui, Jamel, Bank Credit and Short-Run Economic Growth: A Dynamic Threshold Panel Model for ASEAN Countries (November 2, 2020). BETA Working Paper 2020-48 (2020), Available at SSRN: https://ssrn.com/abstract=3723452 or http://dx.doi.org/10.2139/ssrn.3723452

Sy Hoa Ho

Bank for Investment and Development of Vietnam (BIDV) ( email )

BIDV Tower, 35 Hang Voi
Hoan Kiem
Hanoi, 10000
Vietnam

Duy Tan University ( email )

182 Nguyễn Văn Linh, Thanh Khê
Da Nang
Da Nang
Vietnam

Jamel Saadaoui (Contact Author)

University of Strasbourg ( email )

61 Avenue de la Forêt Noire
Strasbourg, Alsace 67000
France

HOME PAGE: http://www.jamelsaadaoui.com/

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