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Bank credit and economic growth

  • Leitão, Nuno Carlos

This manuscript examines the link between bank lending and economic growth for European Union (EU-27). The period was examined, between 1990 and 2010. We apply a dynamic panel data (GMM-System estimator). This estimator permits the researchers to solve the problems of serial correlation, heteroskedasticity and endogeneity for some explanatory variables .As the results show, savings indeed promotes growth. The inflation has a negative impact on economic growth as previous studies. Our results show that domestic credit discourages the growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 42664.

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Date of creation: 15 Nov 2012
Date of revision: 2012
Handle: RePEc:pra:mprapa:42664
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