Analysis of Demand for Credit and Interest Rate in Ghana
Promise Orlando Quashigah, Nicholas Kwabla Kwashigah
Asian Journal of Economics, Business and Accounting · pp. 1–9 · Published 13 Oct 2017
10.9734/AJEBA/2017/33418Abstract
The paper investigates the relationship between interest rates and demand for credit in Ghana. The paper uses time series data covering the period 1965 to 2010 and adopt the Johansen cointegration to examine the relationship between interest rate and demand for credit. The results suggest that interest rates have a negative impact on the demand for credit in both the short run and the long run. An increase in the real lending rate may not immediately prevent the demand for credit but it may result in a fall in the demand for credit in both the short run and long run. This implies that if forces of market tend to put an upward pressure on prices, authorities should take advantage of it and make more credit available. Again, authorities should emphasis on stability of price in order to reverse the negative short run or negative long run effect between the real lending rate and demand for credit.
Cited by 1
Moinak Maiti, Ishmael Ali Esson, Darko Vuković · Journal of Public Affairs · 2020
Related research
- Deposit Money Banks’ Credit and Investment Drive of Developing Economies: Empirical Evidence from Nigeria — shares topic coverage
- Is There A Casual Relationship Between Lending Interest Rate and Credit Availability to Households in Namibia? — shares topic coverage
- Empirical Analysis of the Relationship between Industrial Performance and Macroeconomic Factors in Ghana — shares topic coverage
- Dynamic Linkage between Monetary Policy and Stock Performance in Nigeria: Cointegration and ECM Techniques — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
1
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.