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The Credit Policy And Its Impact On The Romanian Economy

Author

Listed:
  • ELENA PELINESCU

    () (Institute for Economic Forecasting, Romania)

  • PETRE CARAIANI

    () (Institute for Economic Forecasting, Romania)

Abstract

In this paper we discuss the credit policy and how it affected the macroeconomic dynamics in Romania. We estimate a regression on quarterly data in which economic growth is the dependant variable and foreign direct investments and domestic credit are the explanatory variable. We found significant and strong positive coefficients for the effects of credits and foreign direct investments on economic growth. We also found some degree of inertia in GDP.

Suggested Citation

  • Elena Pelinescu & Petre Caraiani, 2012. "The Credit Policy And Its Impact On The Romanian Economy," New Trends in Modelling and Economic Forecast (MEF 2011), ROMANIAN ACADEMY – INSTITUTE FOR ECONOMIC FORECASTING;"Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 1(1), pages 54-68, January.
  • Handle: RePEc:ntu:ntumef:vol1-iss1-12-054
    as

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    File URL: http://mef.univnt.ro/wp-content/uploads/MEF/2011/mef-01.05.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    6. Schmidt, Reinhard H. & Hackethal, Andreas & Tyrell, Marcel, 1999. "Disintermediation and the Role of Banks in Europe: An International Comparison," Journal of Financial Intermediation, Elsevier, vol. 8(1-2), pages 36-67, January.
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    8. Peter Backé, 2005. "Developments in Credit to the Private Sector in Central and Eastern European EU Member States: Emerging from Financial Repression — A Comparative Overview," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 83-109.
    9. Agenor, Pierre-Richard & McDermott, C John & Prasad, Eswar S, 2000. "Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts," World Bank Economic Review, World Bank Group, vol. 14(2), pages 251-285, May.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    credit policy; business cycles; linear regression; FDI; inertia;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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