Bank credit and economic growth:a dynamic panel data analysis

• Author(s): Leitão, Nuno Carlos
• Date: 2012
• Persistent ID: http://hdl.handle.net/10400.15/761
• Origin: Repositório Científico do Instituto Politécnico de Santarém
• Subject(s): Economic Growth; Bank Credit; Panel Data; European Union
• Document Type: Article
• Language: English

Description

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