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Commercial banks lending and economic growth in Malaysia : an empirical study

The major concern of this paper is to determinate the causal relation among commercial banks lending and economic performance in a small open economy, Malaysia. Engle-Granger (1987) cointegration and causality methodology were used in analysis. Annual data from 1959 to 1998 reveals a long run relati...

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Main Author: Tang, T.C.
Format: Article
Language:English
Published: Institute For Development Studies Sabah (IDS) 2000
Subjects:
H Social Sciences (General)
Methodology
Banking
Credit. Debt. Loans
Online Access:http://eprints.um.edu.my/17133/1/BRCBL_G2000.pdf
http://eprints.um.edu.my/17133/
http://www.ids.org.my/ids/
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spelling my.um.eprints.171332017-05-22T03:18:09Z http://eprints.um.edu.my/17133/ Commercial banks lending and economic growth in Malaysia : an empirical study Tang, T.C. H Social Sciences (General) Methodology Banking Credit. Debt. Loans The major concern of this paper is to determinate the causal relation among commercial banks lending and economic performance in a small open economy, Malaysia. Engle-Granger (1987) cointegration and causality methodology were used in analysis. Annual data from 1959 to 1998 reveals a long run relationship among Real Gross Domestic Product (RGDP) and commercial banks lending in aggregate level. The long run elasticity of commercial banks lending on RGDP is 0.50 and 2.0 of RGDP on commercial banks lending. The causality analysis shows that the aggregate growth of commercial banks lending has no predictive content for economic growth. A reverse direction of causality was found there are economic growth do 'cause' growth of commercial banks lending. These results therefore imply a remarkable need of commercial banks credit while economic growth is well performed. Institute For Development Studies Sabah (IDS) 2000-06 Article PeerReviewed application/pdf en http://eprints.um.edu.my/17133/1/BRCBL_G2000.pdf Tang, T.C. (2000) Commercial banks lending and economic growth in Malaysia : an empirical study. Borneo Review : Journal of the Institute for Development Studies (Sabah), 11 (1). pp. 60-71. ISSN 0128-7397 http://www.ids.org.my/ids/
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
language English
topic H Social Sciences (General)
Methodology
Banking
Credit. Debt. Loans
spellingShingle H Social Sciences (General)
Methodology
Banking
Credit. Debt. Loans
Tang, T.C.
Commercial banks lending and economic growth in Malaysia : an empirical study
description The major concern of this paper is to determinate the causal relation among commercial banks lending and economic performance in a small open economy, Malaysia. Engle-Granger (1987) cointegration and causality methodology were used in analysis. Annual data from 1959 to 1998 reveals a long run relationship among Real Gross Domestic Product (RGDP) and commercial banks lending in aggregate level. The long run elasticity of commercial banks lending on RGDP is 0.50 and 2.0 of RGDP on commercial banks lending. The causality analysis shows that the aggregate growth of commercial banks lending has no predictive content for economic growth. A reverse direction of causality was found there are economic growth do 'cause' growth of commercial banks lending. These results therefore imply a remarkable need of commercial banks credit while economic growth is well performed.
format Article
author Tang, T.C.
author_facet Tang, T.C.
author_sort Tang, T.C.
title Commercial banks lending and economic growth in Malaysia : an empirical study
title_short Commercial banks lending and economic growth in Malaysia : an empirical study
title_full Commercial banks lending and economic growth in Malaysia : an empirical study
title_fullStr Commercial banks lending and economic growth in Malaysia : an empirical study
title_full_unstemmed Commercial banks lending and economic growth in Malaysia : an empirical study
title_sort commercial banks lending and economic growth in malaysia : an empirical study
publisher Institute For Development Studies Sabah (IDS)
publishDate 2000
url http://eprints.um.edu.my/17133/1/BRCBL_G2000.pdf
http://eprints.um.edu.my/17133/
http://www.ids.org.my/ids/
_version_ 1643690396023259136
score 13.211869

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