The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania
The Vector Error Correction Model uses bank credit to the public sector and bank credit to the private sector as variables co-integrated with GDP growth. Finding the short-term and long-term causes of the relationship between credit activity and economic growth in Albania is the primary goal of thi...
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2022-09-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
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| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/2022-2/Section%205/14.pdf |
| _version_ | 1811240526911897600 |
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| author | Klejda Gabeshi |
| author_facet | Klejda Gabeshi |
| author_sort | Klejda Gabeshi |
| collection | DOAJ |
| description | The Vector Error Correction Model uses bank credit to the public sector and bank credit to the private sector as variables co-integrated with GDP growth. Finding the short-term and long-term causes of the relationship between credit activity and economic growth in Albania is the primary
goal of this paper. The independent variable of bank credit to the public sector expressed as a percentage of GDP will be the focus of the econometric model. The additional independent factors taken into account are: bank credit to the private sector as percent of GDP; deposits as percent of GDP; roe; non-performing loans and the Herfindahl index. The VEC model concluded in a positive relationship between economic growth and public credit, deposits and non-performing loans.
Otherwise, the results displayed a negative link between economic growth and private credit, ROE and the Herfindahl index. |
| first_indexed | 2024-04-12T13:21:55Z |
| format | Article |
| id | doaj.art-93e011e718414cd59f4324f82466f44e |
| institution | Directory Open Access Journal |
| issn | 2393-3127 |
| language | English |
| last_indexed | 2024-04-12T13:21:55Z |
| publishDate | 2022-09-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-93e011e718414cd59f4324f82466f44e2022-12-22T03:31:26ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272022-09-01XXII1882888The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in AlbaniaKlejda Gabeshi0University of Craiova, Faculty of Economics and Business Administration, Romania Logos University of Tirana, Albania The Vector Error Correction Model uses bank credit to the public sector and bank credit to the private sector as variables co-integrated with GDP growth. Finding the short-term and long-term causes of the relationship between credit activity and economic growth in Albania is the primary goal of this paper. The independent variable of bank credit to the public sector expressed as a percentage of GDP will be the focus of the econometric model. The additional independent factors taken into account are: bank credit to the private sector as percent of GDP; deposits as percent of GDP; roe; non-performing loans and the Herfindahl index. The VEC model concluded in a positive relationship between economic growth and public credit, deposits and non-performing loans. Otherwise, the results displayed a negative link between economic growth and private credit, ROE and the Herfindahl index.https://stec.univ-ovidius.ro/html/anale/RO/2022-2/Section%205/14.pdfalbaniabank crediteconomic growthvector error correction model |
| spellingShingle | Klejda Gabeshi The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania Ovidius University Annals: Economic Sciences Series albania bank credit economic growth vector error correction model |
| title | The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania |
| title_full | The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania |
| title_fullStr | The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania |
| title_full_unstemmed | The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania |
| title_short | The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania |
| title_sort | impact of bank credit to the public and private sector on the economic growth in albania |
| topic | albania bank credit economic growth vector error correction model |
| url | https://stec.univ-ovidius.ro/html/anale/RO/2022-2/Section%205/14.pdf |
| work_keys_str_mv | AT klejdagabeshi theimpactofbankcredittothepublicandprivatesectorontheeconomicgrowthinalbania AT klejdagabeshi impactofbankcredittothepublicandprivatesectorontheeconomicgrowthinalbania |