Sectoral Growth Impacts of Bank Credit Allocation: The Role of COVID-19 Pandemic as Moderating Variable
Sectoral Growth Impacts of Bank Credit Allocation: The Role of COVID-19 Pandemic as Moderating Variable
Author(s): Ikhsan Ikhsan, Khairul AmriSubject(s): Economy, National Economy, Business Economy / Management
Published by: Институт за икономически изследвания при Българска академия на науките
Keywords: Bank credit; Sectoral output; Covid-19 pandemic; Hierarchical linear regression
Summary/Abstract: Our study aims to investigate the effect of bank credit on sectoral output growth in Indonesia. The sectoral output comprises the agricultural, manufacturing, construction, wholesale & retail trades, and transport & storage sectors. We position the Covid-19 pandemic as a moderating variable between sectoral economic growth and bank credit. Using monthly time series data from 2015.M1 to 2020.M12, we employ hierarchical linear regression to estimate the functional relationship between variables. The study points out that bank credit positively affects sectoral output. In contrast, the covid-19 pandemic has had a negative effect. Nevertheless, the pandemic moderates the influence of bank credit on the manufacturing, construction, transport & storage sectors but not on the agriculture, wholesales & retail trades sectors.
Journal: Икономически изследвания
- Issue Year: 2023
- Issue No: 5
- Page Range: 32-50
- Page Count: 19
- Language: English