CREDIT CREATION BY COMMERCIAL BANKS AND ECONOMIC GROWTH IN SIERRA LEONE (1992-2022) AN AUTOREGRESSIVE DISTRIBUTED LAG TECHNIQUE

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  • Richard E. O. Pearce Dr., Department of Banking and Finance, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone orcid.org/0009-0009-3778-3364
  • Abdullah Bah Department of Banking and Finance, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone orcid.org/0009-0008-9926-4706
  • Ambalieu Barrie Department of Accountancy, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone
  • Mohamed Ernest Smith Department of Accountancy, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone

DOI:

https://doi.org/10.46827/ejefr.v8i2.1680

Klíčová slova:

credit creation, economic growth, commercial banks

Abstrakt

The study examined the nexus between credit creation and economic growth by commercial banks in Sierra Leone's for the period 1992 to 2022. Specifically, it focused on the influence of commercial bank lending on private sector growth and development. Variables such as interest rate, real exchange rate and inflation are used as independent variables. Gross Domestic Product (GDP) was the chosen metric to represent economic growth, serving as the dependent variable. To ensure uniformity in data analysis, all variables were logged. The study employed the Autoregressive Distributed Lag (ARDL) technique as the primary analytical model. The findings of the regression analysis revealed a direct and positive impact of commercial bank lending on Sierra Leone's economic growth. However, it is noteworthy that the study identified inflation and interest rates as factors exerting negative effects on economic growth.

JEL: E44, E51, G21, O16, O40

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Biografie autora

  • Richard E. O. Pearce, Dr., Department of Banking and Finance, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone orcid.org/0009-0009-3778-3364

    Dr. Richard E.O Pearce is a Lecturer and the head, Department of Banking and Finance at the Institute of Public Administration and Management (IPAM) University of Sierra Leone. He hold a PhD in Development Studies from the NJala University. His research interest span across trade and finance, international business, SMEs development, financial economics, and banking and finance.

    ORCID: orcid.org/0009-0009-3778-3364

  • Abdullah Bah, Department of Banking and Finance, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone orcid.org/0009-0008-9926-4706

    Abdullah Bah is a Lecturer in the Faculty of Accounting and Finance, Department of Banking and Finance at the Institute of Public Administration and Management (IPAM) University of Sierra Leone. His research interest span across macroeconomics, financial economics, trade and finance, international business, accounting and finance, SMEs development, and banking and finance.

    ORCID: orcid.org/0009-0008-9926-4706

  • Ambalieu Barrie, Department of Accountancy, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone

    Ambalieu Barrie is a Lecturer in the Faculty of Accounting and Finance, Department of Accountancy at the Institute of Public Administration and Management (IPAM) University of Sierra Leone. His research interest span across accounting and finance, trade and finance, and auditing.

  • Mohamed Ernest Smith, Department of Accountancy, Institute of Public Administration and Management (IPAM), University of Sierra Leone, AJ Momoh Street, PO Box 570, Freetown, Sierra Leone

    Mohamed Ernest Smith is a Lecturer in the Faculty of Accounting and Finance, Department of Accountancy at the Institute of Public Administration and Management (IPAM) University of Sierra Leone. His research interest span across financial accounting, trade and finance, management accounting, and taxation.

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Stažení

Publikováno

2024-04-12

Číslo

Vol 8 No 2 (2024)

Sekce

Articles