NEW PUBLICATION: The answer is yes. When the credit-to-GDP ratio is above 96.5%, the effect of a further development of bank credit on the economic growth is not significantly different from zero. We use bootstrapped threshold tests to circumvent the difficulties linked to the study of a small sample.
You can find the preprint version, the abstract and the keywords in an older post:
Follow this link to have access to the article:
You can quote this article as:
Sy-Hoa Ho, Jamel Saadaoui, Bank credit and economic growth: A dynamic threshold panel model for ASEAN countries, International Economics, Volume 170, 2022, Pages 115-128, ISSN 2110-7017, https://doi.org/10.1016/j.inteco.2022.03.001.