The impact of domestic credits: A panel data analysis for developing country

The aim of this study is to examine the effect of domestic credits on economic growth through panel data analysis for a sample of 89 developing countries between 2000 and 2020. In the study, two models were estimated for the dependent variables of real gross domestic product and real gross domestic product per capita by using panel data methods. Empirical findings suggest that domestic credits have a positive effect on economic growth. Moreover, while public expenditures, fixed capital formation, and inflation positively affect economic growth, the lending interest rate has a negative effect.