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Research Article
Assessment of Factors Determining the Level of Private Credit in European Union Countries
Dr. Lina Garšvienė — Vilnius University, Šiauliai Academy
Kristina Balčiūnaitė — Vilnius University, Šiauliai Academy
Dr. Kristina Matuzevičiūtė — Vilnius University, Šiauliai Academy
Dr. Dovilė Ruplienė — Vilnius University, Šiauliai Academy
Abstract
This paper aims to evaluate the factors determining countries' private credit level as well as to identify the differences of their effect during the periods when the levels of country private credit exceeded 100 percent of GDP or were below. The research methodology relies on two modifications of the multiple regression model with log differences of variables. Research results showed a negative impact of economic growth and a positive impact of consumer prices and housing prices on the level of private credit. It has also been found that in the first period when the level of private credit to GDP exceeds the 100 per cent threshold households tend to borrow more than in other periods.
Keywords
private creditEuropean Unioneconomic growthhousing pricesregression analysis
