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Does COVID-19 Affect Domestic Credit? Aggregate and Bank Level Evidence From China

Isaac Appiah-Otoo

Asian Economics Letters, 2021, vol. 1, issue 3, 1-5

Abstract: We estimate the impact of COVID-19 on domestic credit in China over the period January 01, 2020 to June 30, 2020. Our findings show that an increase in COVID-19 confirmed cases/deaths significantly increases domestic credit in China, however; the magnitude of the impact is very small. The results from the impulse response analysis show that the response of domestic credit to COVID-19 shocks was positive in both the short- and long-run.

Keywords: domestic credit; financial development; covid-19 (search for similar items in EconPapers)
JEL-codes: E51 I1 (search for similar items in EconPapers)
Date: 2021
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Asian Economics Letters is currently edited by Chun-Ping Chang (Shih Chien University, Taiwan) and Professor Chien-Chiang Lee (Nanchang University, China)

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