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Sectoral impact of bank credit in Malaysia: ARDL modelling approach

This study investigates the sectoral impacts of bank credit on economic output by analysing the long- and short-run effects of bank credit on the output of five major economic sectors in Malaysia. The sectors are the agriculture, manufacturing, mining and quarrying, construction and services sectors...

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Main Authors: Abubakar, Abdulsalam, Kassim, Salina
Format: Article
Language:English
English
Published: Universiti Putra Malaysia Press 2016
Subjects:
HB Economic Theory
HB522 Income. Factor shares.Interest.Profit.Entrepreneurship
HG Finance
HG1501 Banking
Online Access:http://irep.iium.edu.my/51965/1/006%20Pertanika%20Abdulsalam.pdf
http://irep.iium.edu.my/51965/7/51965_Sectoral%20impact%20of%20bank%20credit_Scopus.pdf
http://irep.iium.edu.my/51965/
http://www.pertanika.upm.edu.my/regular_issues.php?jtype=3&journal=JSSH-24-S-5
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spelling my.iium.irep.519652017-04-13T01:30:41Z http://irep.iium.edu.my/51965/ Sectoral impact of bank credit in Malaysia: ARDL modelling approach Abubakar, Abdulsalam Kassim, Salina HB Economic Theory HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HG Finance HG1501 Banking This study investigates the sectoral impacts of bank credit on economic output by analysing the long- and short-run effects of bank credit on the output of five major economic sectors in Malaysia. The sectors are the agriculture, manufacturing, mining and quarrying, construction and services sectors. It employed quarterly data from 1997Q1 to 2014Q4 and adopted the ARDL and ECM approaches. The results revealed that bank credit has uneven impacts on the economic sectors, with significant effects, particularly in the short run on the mining and quarrying, and manufacturing sectors, but no effect on the agriculture sector. In contrast, bank credit is found to have larger long-run impact on output of the construction and services sectors compared to the short run. Hence, the results suggest the importance of considering the sectoral-specific characteristics in extending bank financing to ensure the effectiveness of financing in supporting the growth of the sector. As for the agriculture sector, concessionary financing is needed since it is shown that the sector is not adequately being served by the banking system. Universiti Putra Malaysia Press 2016-05 Article REM application/pdf en http://irep.iium.edu.my/51965/1/006%20Pertanika%20Abdulsalam.pdf application/pdf en http://irep.iium.edu.my/51965/7/51965_Sectoral%20impact%20of%20bank%20credit_Scopus.pdf Abubakar, Abdulsalam and Kassim, Salina (2016) Sectoral impact of bank credit in Malaysia: ARDL modelling approach. Pertanika Journal of Social Science and Humanities, 24 (S). pp. 205-211. ISSN 0128-7702 http://www.pertanika.upm.edu.my/regular_issues.php?jtype=3&journal=JSSH-24-S-5
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HB Economic Theory
HB522 Income. Factor shares.Interest.Profit.Entrepreneurship
HG Finance
HG1501 Banking
spellingShingle HB Economic Theory
HB522 Income. Factor shares.Interest.Profit.Entrepreneurship
HG Finance
HG1501 Banking
Abubakar, Abdulsalam
Kassim, Salina
Sectoral impact of bank credit in Malaysia: ARDL modelling approach
description This study investigates the sectoral impacts of bank credit on economic output by analysing the long- and short-run effects of bank credit on the output of five major economic sectors in Malaysia. The sectors are the agriculture, manufacturing, mining and quarrying, construction and services sectors. It employed quarterly data from 1997Q1 to 2014Q4 and adopted the ARDL and ECM approaches. The results revealed that bank credit has uneven impacts on the economic sectors, with significant effects, particularly in the short run on the mining and quarrying, and manufacturing sectors, but no effect on the agriculture sector. In contrast, bank credit is found to have larger long-run impact on output of the construction and services sectors compared to the short run. Hence, the results suggest the importance of considering the sectoral-specific characteristics in extending bank financing to ensure the effectiveness of financing in supporting the growth of the sector. As for the agriculture sector, concessionary financing is needed since it is shown that the sector is not adequately being served by the banking system.
format Article
author Abubakar, Abdulsalam
Kassim, Salina
author_facet Abubakar, Abdulsalam
Kassim, Salina
author_sort Abubakar, Abdulsalam
title Sectoral impact of bank credit in Malaysia: ARDL modelling approach
title_short Sectoral impact of bank credit in Malaysia: ARDL modelling approach
title_full Sectoral impact of bank credit in Malaysia: ARDL modelling approach
title_fullStr Sectoral impact of bank credit in Malaysia: ARDL modelling approach
title_full_unstemmed Sectoral impact of bank credit in Malaysia: ARDL modelling approach
title_sort sectoral impact of bank credit in malaysia: ardl modelling approach
publisher Universiti Putra Malaysia Press
publishDate 2016
url http://irep.iium.edu.my/51965/1/006%20Pertanika%20Abdulsalam.pdf
http://irep.iium.edu.my/51965/7/51965_Sectoral%20impact%20of%20bank%20credit_Scopus.pdf
http://irep.iium.edu.my/51965/
http://www.pertanika.upm.edu.my/regular_issues.php?jtype=3&journal=JSSH-24-S-5
_version_ 1643614077252009984
score 13.211869

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