The Impact of the Credit Expansion Process on Social Welfare in the Area of Central and South-Eastern Europe
The Impact of the Credit Expansion Process on Social Welfare in the Area of Central and South-Eastern Europe

Summary/Abstract: This study aims at performing an econometric analysis of the credit expansion process and social welfare from a comparative perspective, with a focus on eight developing and advanced economies from Central and South-Eastern Europe (including the case of Romania). The author aims to better understand the real impact of the credit expansion process on social welfare through the financial dimension. In order to achieve this aim, the research seeks to analyze the short-term dynamics (from one quarter to the other) of the relationships between the total volume of credits given to the non-banking private sector by the credit institutions (highlighting thus the credit expansion process) and the GDP per capita and GDP per person employed (proxies for social welfare). The usefulness of the present study becomes higher given the fact that nowadays the socio-economic development is often assisted by a stronger and more acute crisis.

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