Interdependence of the banking sector and the real sector: evidence from OECD countries
Date
2008Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Volume
40
Pages
749 - 764
Language
English
Type
ArticleItem Usage Stats
177
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212
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Abstract
This paper investigates the validity of the credit view hypothesis in eleven OECD countries
over the period 1987:QI – 2003:QIII. The existence of a long-run relationship between the
banking sector and the real sector is supported by cointegration test results. For some of the
countries in the sample, Granger causality tests show the leading role of the banking sector
in the real sector, thus supporting the credit view hypothesis, whereas for other countries, the
same tests indicate no interdependence.
Keywords
Banking sectorReal sector
Cointegration
Causality
Variance decomposition
Impulse-response function