SECTORAL GROWTH IMPACTS OF BANK CREDIT ALLOCATION: THE ROLE OF COVID-19 PANDEMIC AS MODERATING VARIABLE

Ikhsan Ikhsan; Khairul Amri

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SECTORAL GROWTH IMPACTS OF BANK CREDIT ALLOCATION: THE ROLE OF COVID-19 PANDEMIC AS MODERATING VARIABLE

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Ikhsan Ikhsan, Khairul Amri

2023 Ikonomicheski Izsledvania Vol. 32 Issue 5 Article Cited by 3 SDG 8

Abstract

Our study aims to investigate the effect of bank credit on sectoral output growth in Indonesia. The sectoral output comprises the agricultural, manufacturing, construction, wholesale & retail trades, and transport & storage sectors. We position the Covid-19 pandemic as a moderating variable between sectoral economic growth and bank credit. Using monthly time series data from 2015.M1 to 2020.M12, we employ hierarchical linear regression to estimate the functional relationship between variables. The study points out that bank credit positively affects sectoral output. In contrast, the covid-19 pandemic has had a negative effect. Nevertheless, the pandemic moderates the influence of bank credit on the manufacturing, construction, transport & storage sectors but not on the agriculture, wholesales & retail trades sectors. © 2023, Bulgarska Akademiya na Naukite. All rights reserved.

Affiliations

Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia; Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-Raniry, Indonesia

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