Bank Loans and Economic Growth: Case of Uzbekistan

Authors

  • Aybek Shovkievich Kushbakov Independent researcher, Tashkent State University of Economics

DOI:

https://doi.org/10.31150/ajebm.v8i4.3467

Keywords:

banking system, bank credit, economic growth, inflation, monetory policy, neutrality of money

Abstract

This article analyzes the various conflicting opinions and research results regarding the impact of bank loans on economic growth. Some views conclude that bank loans have a stronger influence on inflation rates rather than economic growth, while others argue that bank loans provide a significant boost to economic growth. In our opinion, these perspectives depend on the country's level of development and its development paths. Specifically, the first view tends to be prevalent in countries without well-developed markets, whereas in countries with perfect markets, especially in developed nations, the impact of loans on economic growth is substantial. It should also be emphasized that, regardless of the market's level of perfection, bank loans have a greater impact on economic growth than on inflation rates in the short and medium term. However, in the long term, the expansion of these loans has a more significant effect on inflation. In economic terms, we refer to this as the neutrality of money. In other words, long-term economic growth cannot be achieved solely through monetary policy

Downloads

Download data is not yet available.

References

D. Dansana, S. G. K. Patro, B. K. Mishra, V. Prasad, A. Razak, and A. W. Wodajo, “Analyzing the impact of loan features on bank loan prediction using Random Forest algorithm,” Eng. Rep., vol. 6, no. 2, p. e12707, 2024.

B. N. Ashraf and Y. Shen, “Economic policy uncertainty and banks’ loan pricing,” J. Financ. Stab., vol. 44, p. 100695, 2019.

L. Batrancea, M. K. Rathnaswamy, and I. Batrancea, “A panel data analysis on determinants of economic growth in seven non-BCBS Countries,” J. Knowl. Econ., vol. 13, no. 2, pp. 1651–1665, 2022.

K. Zıdan, “The impact of banking sector on economic growth: Empirical analysis from Palestinian economy,” Int. J. Econ. Financ. Issues, vol. 9, no. 1, pp. 1–6, 2019.

P. K. Ozili, A. Ademiju, and S. Rachid, “Impact of financial inclusion on economic growth: review of existing literature and directions for future research,” Int. J. Soc. Econ., vol. 50, no. 8, pp. 1105–1122, 2022.

Y. Chen, E. K. Kumara, and V. Sivakumar, “Investigation of finance industry on risk awareness model and digital economic growth,” Ann. Oper. Res., pp. 1–22, 2021.

Downloads

Published

2025-04-14

How to Cite

Shovkievich Kushbakov, A. . (2025). Bank Loans and Economic Growth: Case of Uzbekistan. American Journal of Economics and Business Management, 8(4), 1554–1561. https://doi.org/10.31150/ajebm.v8i4.3467

Issue

Section

Articles

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.