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DOMESTIC CREDIT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: A NONLINEAR APPROACH |
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| รหัสดีโอไอ | |
| Creator | Toan Ngoc Bui |
| Title | DOMESTIC CREDIT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: A NONLINEAR APPROACH |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 2 |
| Page no. | 11A02N: 1-9 |
| Keyword | Financial development, Banking sector, Economic growth, Nonlinear approach, GMM. |
| URL Website | http://TuEngr.com/Vol11_2.html |
| Website title | ITJEMAST V11(2) 2020 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | The correlation between domestic credit and economic growth is an interesting research topic that attracts different views from many scholars. Particularly, most empirical studies hardly identify the nonlinear impact of domestic credit on economic growth. With this study, the author attempt to overcome the limitations of earlier studies by analyzing the nonlinear impact of domestic credit on economic growth in ASEAN countries during the period 2004-2017. By employing the Generalized Method of Moment (GMM), the study greatly succeeds in confirming the inverted U-shaped nonlinear impact of domestic credit on economic growth. Accordingly, the increase in domestic credit boosts the economy. However, domestic credit exceeds the optimal threshold (DC* = 97.5%) exerts a negative influence on economic growth. The results provide essential empirical evidence for ASEAN countries to launch credit policies with the aim of sustainable economic growth. |
