Cited by 22Monetary Policy and Economic ImpactBanking stability, regulation, efficiencyEconomic Theory and Policy

A Micro Based Study on Bank Credit and Economic Growth: Manufacturing Sub-Sectors Analysis

Open access
Hacievliyagil, Nuri, Eksi, Ibrahim Halil·2019·South East European Journal of Economics and Business

Abstract

This study examines the relationship between bank credits and performance and growth of manufacturing sub-sectors. Industrial Production Index was used for a different approach as a dependent variable. Indications of the autoregressive distributed lag (ARDL) bound co-integration test support the theory that bank credits are more effective than loan rates on industrial production of sub-sectors. Moreover, the increase in bank credit leads to the rise of industrial production in all the sub-sectors, except Machinery. According to the Toda Yomamato causality test results, there are different degrees of causalities in means of the importance of bank loans for industrial production. On the other hand, in all sub-sectors except machinery and chemical sub-sectors, causality relations were observed at different grades beginning from loan interest rates to industrial production. As a result, this study concludes with the evidence of supply leading hypothesis via the financial sector leads and causes economic growth.

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  • A study of 35 countries from 1860 to 1963 found a positive connection between financial development and GDP per capita.

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Research works printed but not linked: 13

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Authors
Hacievliyagil, N., & Eksi, I. H.
Affiliations
  • PhD, Inonu University , Turkey
  • PhD, Assoc. Prof. Gaziantep University , Turkey
Venue
South East European Journal of Economics and Business
Published
2019-06-01
Volume
14
Issue
1
Pages
72-91
ISSN
2233-1999 (ISSN-L)
OpenAlex
W2967683490
Cited by
22
References
117
Citations by year
2026: 4 · 2025: 2 · 2024: 6 · 2023: 3 · 2022: 3 · 2020: 4
FWCI
3.77
Type
journal article
Language
en
Open access
Locations
  • South East European Journal of Economics and Business (publishedVersion, cc-by-nc-nd)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
Keywords
bank lending, economic growth, manufacturing sub-sectors, industrial production, loan interest rates, supply-leading hypothesis, financial services, causality

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