Theoretical and Applied Economics (Mar 2015)
The credit impact on the economic growth
Abstract
In the current economic context, ensuring a sustainable and consistent economic growth is required for the reduction of development gaps by comparison the European average. To this end, an important part is played by resuming the economy financing and supporting the investment processes that generate income and jobs. This article aims to test the credit impact on the economic activity, if it is relevant in generating economic growth, as it represents a key factor in supporting the activity, or, on the contrary, if it affects the activity, diminishing its growth rhythm. The literature does not provide a clear answer to these aspects, as the periods taken into account for the analysis are short ones, are not homogenous, the economic conditions under which the crediting processes developed are different and the economy is disturbed by the external shocks and factors, which are difficult to intercept in the model. This article starts from the components within the GDP breakdown, identifies the relationship which is established between these and the credits granted to individuals and legal persons, assesses the credit impact on the economic activity and estimates a possible influence on the GDP.
