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Bank credit to the private sector: VECM approach for Albania

Journal of Economics and Political Economy

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Title Bank credit to the private sector: VECM approach for Albania
 
Creator MATUKA, Adelajda;

University of Macerata

Department of Economics and Law
 
Subject Bank credit; Vector error eorrection; Albania.
C32; C53; E44; G21.
 
Description Abstract. This study evaluates the determinants of bank credit to the private sector in Albania from 2000 to 2017 using a Vector Error Correction Model which includes both demand and supply-side factors. We perform Augmented Dickey Fuller Test, Phillips-Perron test and Johansen cointegration test to ensure the stationarity and long-run relation between explanatory variables. The results show that credit to the private sector is positively related to economic growth. A higher lending rate will decrease the bank credit to the private sector. Further, the decrease of non-performing loans and domestic government debt will increase the funds available for the private sector. The negative sign of error correction term and the diagnostic tests for autocorrelation, normality and ARCH effects ensure that our model is properly defined.Keywords. Bank credit , Vector error eorrection, Albania.JEL. C32, C53, E44, G21.
 
Publisher Journal of Economics and Political Economy
Journal of Economics and Political Economy
 
Contributor —
 
Date 2019-07-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEPE/article/view/1894
10.1453/jepe.v6i2.1894
 
Source Journal of Economics and Political Economy; Vol 6, No 2 (2019): June; 159-171
Journal of Economics and Political Economy; Vol 6, No 2 (2019): June; 159-171
2148-8347
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEPE/article/view/1894/1906
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1894/984
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1894/985
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1894/986
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1894/987
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1894/988
 
Rights Copyright (c) 2019 Journal of Economics and Political Economy
http://creativecommons.org/licenses/by-nc/4.0