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Impact of Bank Credit on Economic Growth in Nepal

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  • Neelam Timsina

Abstract

This study examines the impact of commercial bank credit to the private sector on the economic growth in Nepal from supply side perspectives. The study has applied Johansen co-integration approach and Error Correction Model using the time series data for the period of 1975-2013. The empirical results show that bank credit to the private sector has positive effects on the economic growth in Nepal only in the long run. Nevertheless, in the short run, it has been observed a feedback effect from economic growth to private sector credit.

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  • Neelam Timsina, 2015. "Impact of Bank Credit on Economic Growth in Nepal," Working Papers id:7271, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:7271
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