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AuthorSeifallah, Sassi
AuthorBen Ali, Mohamed Sami
Available date2016-04-27T11:24:03Z
Publication Date2014-07
Publication NameEconomic Notes
CitationSeifallah, S., Sami, B.A.M. The Credit-Growth Nexus: New Evidence from Developing and Developed Countries (2014) Economic Notes, 43 (2), pp. 115-135.
ISSN0391-5026
URIhttp://dx.doi.org/10.1111/ecno.12017
URIhttp://hdl.handle.net/10576/4461
AbstractThe purpose of this paper is to assess the relationship between credit market development and economic growth for a heterogeneous panel of 20 developing and developed countries with varied growth experiences. The empirical study is based on estimations of generalized method of moments (GMM) and pooled mean group (PMG) on heterogeneous panel data model. Difference GMM estimation indicates that credit market development has a negative effect on economic growth. This result is robust for our full sample and for the subsample of non-OECD countries, but not for the subsample of OECD countries. However, using a PMG model, we provide evidence of a positive impact in the long run between credit market development and economic growth. When considering heterogeneity in the short-run relationship across countries, our findings suggest that the credit–growth relationship is specific across countries, depending on each country-specific legal and macroeconomic environment.
Languageen
PublisherJohn Wiley & Sons Ltd.
SubjectEconomic growth
Dynamic growth model
Credit development
TitleThe Credit–Growth Nexus: New Evidence from Developing and Developed Countries
TypeArticle
Pagination115-135
Issue Number2
Volume Number43
dc.accessType Open Access


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