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- Title
GDP AND LENDING BEHAVIOUR: EMPIRICAL EVIDENCE FOR BALTIC STATES ECONOMIES.
- Authors
Brasliņš, Ģirts; Orlovs, Aleksis; Braukša, Ieva; Bulis, Aldis
- Abstract
Sustainable economic development is based on the favourable and stable business environment that promotes competitiveness of companies. Commercial banks facilitate the capital flow from the less efficient sectors of the economy and businesses to more competitive industries and enterprises. The purpose of the research is to analyze the dynamics of the Baltic States' GDPs during years 2005-2010 and to test the GDP correlation with the loans issued by domestic commercial banks to the businesses. The key results of the analysis provide evidence about the mutual relations between the leading and influencing factors in GDP and issued loans and serve as a basis for developing proposals on fostering the recovery of Baltic States' economies. The Granger test analysis performed for the aggregate GDP and lending, as well as for six industries, provides controversial results and indicates that output in some industries has mutual relationship with the availability of financial resources, however the business sector development leads to the increase of credit granting thus ensuring the development of the sector. The methods applied in the research comprise the systematic, logical and comparative analysis, analysis of statistical data, expert method and generalization, as well as the econometric Granger causality test method.
- Subjects
BALTIC States; SUSTAINABLE development; ECONOMIC competition; BANKING industry; GROSS domestic product; COMMERCIAL loans; ECONOMIC history
- Publication
Regional Formation & Development Studies, 2013, Issue 10, p31
- ISSN
2029-9370
- Publication type
Article