IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxxiiy2022i1p882-888.html
   My bibliography  Save this article

The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania

Author

Listed:
  • Klejda Gabeshi

    (University of Craiova, Faculty of Economics and Business Administration, Romania Logos University of Tirana, Albania)

Abstract

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.

Suggested Citation

  • Klejda Gabeshi, 2022. "The Impact of Bank Credit to the Public and Private Sector on the Economic Growth in Albania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 882-888, September.
    • Handle: RePEc:ovi:oviste:v:xxii:y:2022:i:1:p:882-888
    as

    Download full text from publisher

    File URL: https://stec.univ-ovidius.ro/html/anale/RO/2022-2/Section%205/14.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klejda Gabeshi, 2023. "The Causal Relationship Between Bank Credit For Real Estate And Economic Growth In Albania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 188-193, February.

    More about this item

    Keywords

    Albania; bank credit; economic growth; Vector Error Correction Model;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    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:ovi:oviste:v:xxii:y:2022:i:1:p:882-888. 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: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    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.