{"id":2581,"date":"2021-03-10T05:51:44","date_gmt":"2021-03-10T05:51:44","guid":{"rendered":"https:\/\/mgt.sjp.ac.lk\/vjm\/?page_id=2581"},"modified":"2021-03-10T05:53:17","modified_gmt":"2021-03-10T05:53:17","slug":"relation-between-sectoral-distribution-of-commercial-bank-credit-and-economic-growth-in-sri-lanka","status":"publish","type":"page","link":"https:\/\/mgt.sjp.ac.lk\/vjm\/2018-volume-4-number-02\/relation-between-sectoral-distribution-of-commercial-bank-credit-and-economic-growth-in-sri-lanka\/","title":{"rendered":"Relation between Sectoral Distribution of Commercial Bank Credit and Economic Growth in Sri Lanka"},"content":{"rendered":"<p><section class=\"kc-elm kc-css-541296 kc_row\"><div class=\"kc-row-container  kc-container\"><div class=\"kc-wrap-columns\"><div class=\"kc-elm kc-css-183748 kc_column kc_col-sm-12\"><div class=\"kc-col-container\"><div class=\"kc-elm kc-css-834366 kc_text_block\"><\/p>\n<ul class=\"list4\">\n<li><span style=\"font-weight: 600;\">V. Muthusamy<\/span><br \/><i style=\"color: #666666; font-size: 11pt;\">Sabaragamuwa University Sri Lanka, Sri Lanka<\/i><\/li>\n<li><span style=\"font-weight: 600;\">N. J. Dewasiri<\/span><br \/><i style=\"color: #666666; font-size: 11pt;\">University of Sri Jayewardenepura, Sri Lanka<\/i><\/li>\n<li><span style=\"font-weight: 600;\">Y. K. B. Weerakoon<\/span><br \/><i style=\"color: #666666; font-size: 11pt;\">University of Sri Jayewardenepura, Sri Lanka<\/i><\/li>\n<li><span style=\"font-weight: 600;\">A. A. M. D. Amarasinghe<\/span><br \/><i style=\"color: #666666; font-size: 11pt;\">Sabaragamuwa University Sri Lanka, Sri Lanka<\/i><\/li>\n<li><span style=\"font-weight: 600;\">Abstract<\/span><br \/><i style=\"color: #666666; font-size: 11pt; text-align: justify;\">This study investigates the impact of sectoral distribution of commercial bank credit on economic growth in Sri Lanka based on data from 2005 to 2017. The Auto-regressive Distributed Lag (ARDL) model is used to investigate short and long run impact of sectoral distribution of commercial bank credit on Gross Domestic Product (GDP). The findings of the ARDL Error Correction model indicate that the commercial bank sectoral credit distribution is significantly explaining the short run economic growth. Moreover, ARDL long run form and bounds test shows that there is a long run relation between the variables. The industrial sector has a long run positive relationship with GDP while the other sectors are insignificant in explaining long run economic growth. According to the results, the government can motivate banks to distribute credit facilities to the industry sector to boost GDP in the long-run. This is the first study that discusses the sectoral distribution of commercial bank credit on economic growth of Sri Lanka as per the best of the authors\u2019 knowledge.<\/i><\/li>\n<li><span style=\"font-weight: 600;\">Keywords<\/span><br \/><i style=\"color: #666666; font-size: 11pt;\">Commercial bank, Credit, Economic growth, Gross Domestic Product<\/i><\/li>\n<\/ul>\n<p>\n<\/div><\/div><\/div><\/div><\/div><\/section><section class=\"kc-elm kc-css-210524 kc_row\"><div class=\"kc-row-container  kc-container\"><div class=\"kc-wrap-columns\"><div class=\"kc-elm kc-css-721810 kc_col-sm-12 kc_column kc_col-sm-12\"><div class=\"kc-col-container\"><div class=\"kc-elm kc-css-336452\" style=\"height: 20px; clear: both; width:100%;\"><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"kc-elm kc-css-668284 kc_row\"><div class=\"kc-row-container  kc-container\"><div class=\"kc-wrap-columns\"><div class=\"kc-elm kc-css-212808 kc_column kc_col-sm-12\"><div class=\"kc-col-container\"><div class=\"kc-elm kc-css-947086 kc_text_block\"><\/p>\n<p><b>Download<\/b><\/p>\n<p>\n<\/div><\/div><\/div><\/div><\/div><\/section><section class=\"kc-elm kc-css-988084 kc_row\"><div class=\"kc-row-container  kc-container\"><div class=\"kc-wrap-columns\"><div class=\"kc-elm kc-css-525226 kc_col-sm-12 kc_column kc_col-sm-12\"><div class=\"kc-col-container\"><div class=\"kc-elm kc-css-375057 kc-icon-wrapper\">\n\t\t<a href=\"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-content\/uploads\/2021\/03\/VJM-42-51-69.pdf\" target=\"_self\" title=\"\">\n\t\t<i class=\"fa-file-pdf\"><\/i>\n\t\t<\/a>\n\t<\/div>\n<\/div><\/div><\/div><\/div><\/section><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":0,"parent":2563,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/pages\/2581"}],"collection":[{"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/comments?post=2581"}],"version-history":[{"count":3,"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/pages\/2581\/revisions"}],"predecessor-version":[{"id":2584,"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/pages\/2581\/revisions\/2584"}],"up":[{"embeddable":true,"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/pages\/2563"}],"wp:attachment":[{"href":"https:\/\/mgt.sjp.ac.lk\/vjm\/wp-json\/wp\/v2\/media?parent=2581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}