The impact of economic growth on credit market development in Jordan

المؤلف

Shakatrah, Mamun Yasin

المصدر

Arab Economic Researches Journal

العدد

المجلد 18، العدد 53-54 (30 إبريل/نيسان 2011)، ص ص. 33-47، 15ص.

الناشر

مركز دراسات الوحدة العربية

تاريخ النشر

2011-04-30

دولة النشر

لبنان

عدد الصفحات

15

التخصصات الرئيسية

العلوم الاقتصادية والمالية وإدارة الأعمال

الموضوعات

الملخص EN

This study investigated the impact of economic growth on credit market development in Jordan for the period 2000 - 2009, using a Vector Error Correction Model (VECM).

This study aimed to investigate the short - run and the long - run relationship among bank lending, gross domestic product and inflation rate applying the Johansen cointegration analysis.

For this purpose unit root tests were carried out according to Dicky - Fuller (1979)1, and Johansen cointegration analysis was applied to examine whether the variables are cointegrated of the same order2, taking into account the maximum eigenvalues and trace statistics tests.

Finally, a vector error correction model was selected to investigate the long - run relationship between growth and credit market development.

The results suggested that a short - run increase of economic growth per 1 % induced an increase of bank lending 0.4% in Jordan, while an increase of inflation rate per 1% induced a relative decrease of bank lending per 0.56% in Jordan.

The estimated coefficient of error correction term was statistically significant and had a negative sign, which confirmed that there was not any problem in the long - run equilibrium between the examined variables.

The empirical results indicated that economic growth had a positive effect.

Bank development was determined by the size of bank lending directed to private sector at times of low inflation rates leading to higher economic growth rates.

نمط استشهاد جمعية علماء النفس الأمريكية (APA)

Shakatrah, Mamun Yasin. 2011. The impact of economic growth on credit market development in Jordan. Arab Economic Researches Journal،Vol. 18, no. 53-54, pp.33-47.
https://search.emarefa.net/detail/BIM-267107

نمط استشهاد الجمعية الأمريكية للغات الحديثة (MLA)

Shakatrah, Mamun Yasin. The impact of economic growth on credit market development in Jordan. Arab Economic Researches Journal Vol. 18, no. 53-54 (Jan. / Apr. 2011), pp.33-47.
https://search.emarefa.net/detail/BIM-267107

نمط استشهاد الجمعية الطبية الأمريكية (AMA)

Shakatrah, Mamun Yasin. The impact of economic growth on credit market development in Jordan. Arab Economic Researches Journal. 2011. Vol. 18, no. 53-54, pp.33-47.
https://search.emarefa.net/detail/BIM-267107

نوع البيانات

مقالات

لغة النص

الإنجليزية

الملاحظات

Includes bibliographical references.

رقم السجل

BIM-267107