Examining the Interactions of Economic Growth and Bank Credit to the Private Sector in Morocco: A Causality Analysis

KCHIKECHE, Ahmed; Mafamane, Driss

doi:10.2139/ssrn.4538254

Cited by 2 publications

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

External Shocks, Asset Prices, and Credit Dynamics in Morocco: Insights from Disequilibrium Models

Kchikeche,

Mafamane

2024

ECO

View full text Add to dashboard Cite

We investigate external shocks and asset price’s impact on the slowdown of business and household credit in Morocco using disequilibrium models. The results show that banks’ fly to quality, driven by a simultaneous decline in interest margins and borrower creditworthiness, is a key factor behind the slowdown of credit supply. On the demand side, slower growth and saturated housing demand have contributed to reduced borrowing and repayment capacity of borrowers. Furthermore, external shocks are transmitted to credit supply through foreign deposits and households’ credit demand through remittances. Additionally, stocks and residential real estate asset prices are closely tied to credit demand. These findings suggest that addressing bank credit barriers could stimulate economic growth. To do so, policymakers may consider employing unconventional monetary policy tools to effectively manage the transmission channels of external shocks and asset prices to bank credit dynamics.

show abstract

External Shocks, Asset Prices, and Credit Dynamics in Morocco: Insights from Disequilibrium Models

Kchikeche,

Mafamane

2024

ECO

View full text Add to dashboard Cite

show abstract

Remittances and Economic Growth Dynamics

Mohammed

2024

Examining Corruption and the Sustainable Development Goals

View full text Add to dashboard Cite

This study investigates the intricate connection between remittances, economic growth, and corruption in Sub-Saharan Africa (SSA) using data from 2006-2021. It aims to answer whether corruption is a catalyst or obstacle to the relationship between remittances and economic growth. The research employs a two-stage least squares (2SLS) estimator. The study reveals that remittances have a more beneficial and direct impact on economic growth in countries with low levels of corruption. Furthermore, this study identifies that robust and transparent institutions could mitigate the negative impact of corruption on the remittances-economic growth nexus. Based on the findings, policymakers are recommended to implement targeted policies to improve transparency, accountability, rule of law, and the effectiveness of remittance utilization, particularly in countries with high levels of corruption. By tackling corruption-related issues, governments can fully realize the benefit of remittances as a driver for long-term economic growth.

show abstract

Examining the Interactions of Economic Growth and Bank Credit to the Private Sector in Morocco: A Causality Analysis

Cited by 2 publications

References 43 publications

External Shocks, Asset Prices, and Credit Dynamics in Morocco: Insights from Disequilibrium Models

External Shocks, Asset Prices, and Credit Dynamics in Morocco: Insights from Disequilibrium Models

Remittances and Economic Growth Dynamics

Contact Info

Product

Resources

About