IDEAS home Printed from https://ideas.repec.org/a/euj/jafess/v8y2023i2id66.html

The empirical study of interest rate pass-through in Cambodia: An error correction model

Author

Listed:
  • Kosal Song

    (CamEd Business School, Cambodia)

  • Siphat Lim

    (CamEd Business School, Cambodia)

Abstract

The error correction model was used to explore the influence of domestic and international interest rates, proxied by the 6-Month and 1-Year SIBOR, on the borrowing interest rate of bank. The primary goal of this study was to determine the pass through from the predicted borrowing rate to the lending rate. The empirical findings of this study confirmed the existence of a long-run relationship between the borrowing rate and its explanatory variables, as evidenced by the two-step co-integration test. Domestic and foreign interest rates have a substantial long-run influence on the borrowing rate. Short-term borrowing rate changes were also impacted by changes in market interest rates and SIBOR rates. The predicted borrowing rate from co-integration equation had a positive significant impact on the lending rate claimed that there had a pass through from foreign to domestic lending rate.

Suggested Citation

  • Kosal Song & Siphat Lim, 2023. "The empirical study of interest rate pass-through in Cambodia: An error correction model," Journal of Accounting, Finance, Economics, and Social Sciences, CamEd Business School, vol. 8(2), pages 51-60, December.
    • Handle: RePEc:euj:jafess:v:8:y:2023:i:2:id:66
    DOI: 10.62458/jafess.160224.8(2)51-60
    as

    Download full text from publisher

    File URL: https://jafess.com/index.php/home/article/view/66
    File Function: Abstract page
    Download Restriction: no
    File URL: https://jafess.com/index.php/home/article/download/66/52
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.62458/jafess.160224.8(2)51-60?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euj:jafess:v:8:y:2023:i:2:id:66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Narin Choeun (email available below). General contact details of provider: https://jafess.com/index.php/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.