The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis
This study examines the relationship between banking sector development (credit and deposits) and economic growth in Ecuador, using quarterly data for the period 2000–2022. An ARDL approach with Bound Test cointegration is employed, incorporating structural breaks using the Bai–Perron test and contr...
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| Language: | English |
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MDPI AG
2025-05-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/13/2/76 |
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| author | Freddy Naula Cristian Zamora Kevin Gomez |
| author_facet | Freddy Naula Cristian Zamora Kevin Gomez |
| author_sort | Freddy Naula |
| collection | DOAJ |
| description | This study examines the relationship between banking sector development (credit and deposits) and economic growth in Ecuador, using quarterly data for the period 2000–2022. An ARDL approach with Bound Test cointegration is employed, incorporating structural breaks using the Bai–Perron test and controlling for macroeconomic shocks. In addition, time transformation methodologies are applied to harmonize the frequency of the series: the monthlyization of GDP is performed using the Chow-Lin method, and the imputation of missing unemployment data using the Kalman filter. The results reveal a significant long-run elasticity between bank deposits and GDP (0.45%), while credits do not present a statistically significant effect, possibly due to high delinquency and institutional weakness. Granger causality tests confirm a unidirectional relationship between banking variables to economic growth. These findings highlight the importance of strengthening financial supervision and improving institutional quality to enhance the effect of bank intermediation. The study provides robust and contextualized empirical evidence relevant to resource-dependent economies with concentrated financial systems, contributing to the debate on the relationship between finance and growth in developing countries. |
| format | Article |
| id | doaj-art-da05f122ed094617b5dfd4213e2ad2ec |
| institution | OA Journals |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-da05f122ed094617b5dfd4213e2ad2ec2025-08-20T02:21:10ZengMDPI AGInternational Journal of Financial Studies2227-70722025-05-011327610.3390/ijfs13020076The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration AnalysisFreddy Naula0Cristian Zamora1Kevin Gomez2Facultad de Ciencias Económicas y Administrativas, Universidad de Cuenca, Cuenca 010203, EcuadorFacultad de Ciencias Químicas, Universidad de Cuenca, Cuenca 010203, EcuadorFacultad de Ciencias Económicas y Administrativas, Universidad de Cuenca, Cuenca 010203, EcuadorThis study examines the relationship between banking sector development (credit and deposits) and economic growth in Ecuador, using quarterly data for the period 2000–2022. An ARDL approach with Bound Test cointegration is employed, incorporating structural breaks using the Bai–Perron test and controlling for macroeconomic shocks. In addition, time transformation methodologies are applied to harmonize the frequency of the series: the monthlyization of GDP is performed using the Chow-Lin method, and the imputation of missing unemployment data using the Kalman filter. The results reveal a significant long-run elasticity between bank deposits and GDP (0.45%), while credits do not present a statistically significant effect, possibly due to high delinquency and institutional weakness. Granger causality tests confirm a unidirectional relationship between banking variables to economic growth. These findings highlight the importance of strengthening financial supervision and improving institutional quality to enhance the effect of bank intermediation. The study provides robust and contextualized empirical evidence relevant to resource-dependent economies with concentrated financial systems, contributing to the debate on the relationship between finance and growth in developing countries.https://www.mdpi.com/2227-7072/13/2/76banking developmenteconomic growthlendingdeposits |
| spellingShingle | Freddy Naula Cristian Zamora Kevin Gomez The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis International Journal of Financial Studies banking development economic growth lending deposits |
| title | The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis |
| title_full | The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis |
| title_fullStr | The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis |
| title_full_unstemmed | The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis |
| title_short | The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis |
| title_sort | influence of bank loans and deposits on ecuador s economic growth a cointegration analysis |
| topic | banking development economic growth lending deposits |
| url | https://www.mdpi.com/2227-7072/13/2/76 |
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