An Ardl Approach to Identify Bank Landing Channel in Indonesia

Autor:	Akhsyim Afandi
Jazyk:	angličtina
Rok vydání:	2011
Předmět:	Economic growth development planning HD72-88 Regional economics. Space in economics HT388
Zdroj:	Economic Journal of Emerging Markets, Vol 1, Iss 1 (2011)
Druh dokumentu:	article
ISSN:	2086-3128 2502-180X
Popis:	This paper tests whether the bank lending channel works in Indonesia. It develops an error correction representation of the Autoregressive Distributed Lag (ARDL) model of two bank credit markets. Each model takes account of one structural break associated with the 1998 financial crisis. The date of the crisis is determined by a unit root test that includes two structural breaks. Instead of Johansen’s cointegrating procedure, bounds test procedure is implemented. The estimated error correction model for both markets suggests that bank loans adjust more strongly towards loan supply, implying that monetary-induced disturbances in bank loans originate from the supply side. Keywords: bank lending channel, unit root, structural breaks
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/f8e74bbcb0624e0c8bc58f2bebff0529 Zobrazit plný text záznamu View record in DOAJ