CREDIT GROWTH AND ECONOMIC PERFORMANCE INDICATORS IN THE REPUBLIC OF NORTH MACEDONIA

SAITI, Dashmir (2025) CREDIT GROWTH AND ECONOMIC PERFORMANCE INDICATORS IN THE REPUBLIC OF NORTH MACEDONIA. International Scientific Journal in Economics, Finance, Business, Marketing, Management and Tourism, 12 (23-24). pp. 55-66. ISSN 2545-4544

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Abstract

The study examines the relationship between credit growth and economic performance metrics in the Republic of North Macedonia, including the influence of credit on investments and consumption. Using the generalized method of moments (GMM) and ordinary least squares (OLS), two models are evaluated for the impact of loans to companies and households: one for investment and one for household final consumption. Cointegration is tested using the ARDL bounds approach, which incorporates both long-run relationships and short-run dynamics through the Error Correction Model (ECM). The purpose is to determine the direction in which credit activity influences GDP growth via investments and consumption. According to the first model, which examines household final consumption, the growth rate of firm loans has a greater impact on the growth rate of household final consumption. In contrast, the growth rate of household loans has no statistically significant effect on household final consumption. In the second model, the growth of lending to the population affects investments with a higher intensity, while the growth of lending to companies affects investments with a lower intensity.

Item Type: Article
Uncontrolled Keywords: Gross fixed capital formation (% of GDP), final household spending (% of GDP), the growth rate of all household loans, the growth rate of all business loans, North Macedonia
Subjects: Q Science > Q Science (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Unnamed user with email zshi@unite.edu.mk
Date Deposited: 20 Nov 2025 15:05
Last Modified: 20 Nov 2025 15:05
URI: http://eprints.unite.edu.mk/id/eprint/2139

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