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Relationship between Bank Credit and Economic Growth: Evidence from Nepal

Year: 2024

Type: article

Abstract: Bank credit serves as the lifeblood of economic activities. The paper aims to investigate how bank credit contributes to economic growth by employing the ARDL model, spanning the period 1975 to 2023 in Nepal. The observed empirical analysis shows a positive short-run and long-run association between bank credit and the growth in the economy. The findings of the study suggested that policymakers should focus on increasing credit by the banking and financial sectors to boost economic growth in the long run.

Source: NCC Journal

DOI: 10.3126/nccj.v9i1.72260

Authors: Gyan Mani Adhikari, Tilak Singh Mahara, Jyoti Dahal

Institution: Tribhuvan University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4405116749

FWCI: 2.074

Cites:

Cited by: 3

Related to: 10