Modelling the Demand for New Investment Credits to the Non-Financial Companies in the Slovak Republic
Modelling the Demand for New Investment Credits to the Non-Financial Companies in the Slovak Republic
Author(s): Jozef Heteš, Ivana Špirengová, Michaela UrbanovičováSubject(s): National Economy, Business Economy / Management, Methodology and research technology, Transformation Period (1990 - 2010), Present Times (2010 - today), Accounting - Business Administration
Published by: Reprograph
Keywords: new investment credits; non-financial institutions; demand for investment credits; bounds test; ARDL approach to cointegration;
Summary/Abstract: This article deals with modelling the demand for new investment credits to the non- financial companies in Slovakia. The main aim is to analyze what indicators determine the demand for new investment credits using Autoregressive distributed lag modelling approach to cointegration analysis. The time period under consideration lasts from January 2009 to September 2013. Applied econometric analysis has confirmed the existence of the long- run relationship between the examined variables. We have shown that the index of industrial production, cost of loans and inflation rate are important determinants of the investment credit to the non- financial companies in Slovakia. The employed ARDL approach to cointegration enabled us to examine the long- run and short- run relationships among the variables of interest. The signs of the coefficients indicate that the estimated function is a demand function for the investment credit to the non- financial corporations. Both the CUSUM and CUSUMQ tests confirm the stability of the estimated long- run coefficients of the demand function.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: IX/2014
- Issue No: 30
- Page Range: 632-634
- Page Count: 3
- Language: English
