THE IMPACT OF BANK CREDIT ON ECONOMIC ACTIVITY - AN APPLIED STUDY ON THE LIBYAN ECONOMY DURING THE PERIOD (1990-2023)
This research aimed to measure the impact of credit on GDP at constant prices in the Libyan economy during the period (1990-2023), and using the Johansen Co-integration method, and relying on the standard statistical program (STATA15), the research found a weak correlation between the two research variables, in addition to the existence of a long-term joint integration relationship between the two variables, and it was also found that positive changes in bank credit exert a positive impact on the average per capita GDP in the long term, while negative changes in bank credit exert no significant impact on the average GDP per capita in Libya, as well as the Pairwise Granger Causality Tests indicated a causal relationship compatible with economic theory from credit (TC) to output (GDPPC).
Bank Credit, GDP Per Capita, Economic Activity, Joint Integration, Loans.