engleski

The linkage between extensive lending to private individuals and international trade in small open economies

This paper examines the relationship between international trade and extensive lending to private individuals in a five European post- socialist countries. The study uses panel data for the period 1996 - 2014. The results of Panel ARDL show that increase in banking loans to private individuals over banking loans to corporate increase imports over exports in a short ran. In a long run the exports of the economies outperforms its imports and so the opposite direction was confirmed. The research results indicate that lending to private individuals might be a source of comparative advantages for international trade of small open economies and therefore improve its exports competitiveness.

International trade, Lending, Comparative advantages, Small open economies

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