EXAMINING THE ROLE OF CREDIT VOLUME ON ECONOMIC GROWTH: THE CASE OF AZERBAIJAN (original) (raw)

2019, 37th International Scientific Conference on Economic and Social Development – "Socio Economic Problems of Sustainable Development" - Baku, 14-15 February 2019

Economic growth in the economy,can be measured by an increase in the amount of production and in national income for goods and services over time. Economic development can be defined as a process of structural change in economic, social, cultural and political areas as well as increase in the production and income in a country. However, it is clearthat, the approaches which increase the quality of life of goods and services only enhance the quality of life. For this reason, examining the economic growth from environmental, social and economic point of view is vital in order to ensure the sustainability of development but this also requires the development of the concept of social and cultural aspects. In this study, the relationship between the domestic credit volume and the gross domestic product in the public and deposit banks were analyzed by using the quarterly data covering the periods of 2006-2017 for Azerbaijan. The reason for selection of 2006-2017 period is to release process of the New Azerbaijani Manat in the Republic of Azerbaijan in 2006. As a result of the analysis, it was concluded that each of them was first-order stationary series and there was no long-run relationship between them. Eventually, the result of Granger causality test which is applied for credit volume and economic growth, has a bidirectional causality relationship between two series.