Interdependence of the banking sector and the real sector: evidence from OECD countries


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Sendeniz-Yuencue I., Akdeniz L., Aydogan K.

APPLIED ECONOMICS, vol.40, no.6, pp.749-764, 2008 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 40 Issue: 6
  • Publication Date: 2008
  • Doi Number: 10.1080/00036840600735424
  • Journal Name: APPLIED ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.749-764
  • Middle East Technical University Affiliated: No

Abstract

This article investigates the validity of the credit view hypothesis in eleven OECD (Organization for Economic Cooperation and Development) countries over the period 1987:QI to 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.