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Credit Composition and Subnational Economic Growth: Long-Run and Short-Run Evidence from East Nusa Tenggara Adrianus Ketmoen; Maria Imakulata Pongge; Salomon Leki; Angela Jeni Lodo
Signifikan: Jurnal Ilmu Ekonomi Vol. 15 No. 1 (2026)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v15i1.50180

Abstract

Research Originality. This study advances the finance–growth nexus literature by providing subnational time-series evidence on credit composition rather than aggregate credit, focusing on a structurally developing province in Eastern Indonesia. Research Objectives. This study examines whether different types of bank credit contribute differently to regional economic growth in East Nusa Tenggara. Research Methods. This study applies the Autoregressive Distributed Lag (ARDL) approach. The ARDL Bounds Test is employed to verify cointegration, followed by Error Correction Model (ECM) estimation and diagnostic stability tests. Empirical Results. The findings confirm a significant long-run relationship between credit composition and regional economic growth. Consumer credit exhibits a positive long-run effect on real GRDP, while investment credit shows a moderate impact. Working capital credit does not demonstrate a significant long-run contribution. Implications. The results suggest that not only the volume but also the credit allocation structure plays a crucial role in shaping regional economic performance. Policy strategies in developing regions should therefore emphasize productive and demand-supporting credit allocation to promote sustainable growth. JEL Classification: E44, O16, O47, R11
Co-Authors Adri Gabriel Sooai Agnes Susanti Indrawati Agnes Susanti Indrawati Albertus Reynaldi Nahak Taek Alfira Nay, Yustina Alfry Aristo Jansen Sinlae Amrosia Paskalia Suni Ananda Heppy Aizah Andrian Haro Ang, Clarisa Margaretha Angela Jeni Lodo Anggelina Delviana Klau Anggraeny Paridy Anna Florentina Yunidista Bere Anselmus Boy Baunsele Aoetpah, Yuan M. Apolinaris Tnesi Apolonia Loda Apryanus Fallo Ayub A. Mautorin Banase, Marianus Antonius Deo Datus Bau Mau, Ignatia Thomasita Baunsele, Anselmus Benurtiana Vevin Boelan, Erly G. Correia, Maria Fatima M.M Damung, Maria Fatima Daok, Angelina Wulandari David Manafe Degeovani, Leonardo Elviana Wehelmina Fani Emiliana Martuti Lawalu Engelbertus G. Ch. Watu Engelbertus G. Ch. Watu Enike Tje Yustin Dima Erly Grizca Boelan Evafgia M. Gratya Bare Firmansyah, Mariano Francisco Pinto Oliviera Fransiska Jessica Adventia Wea Fransiskus Algentianus Kato Gamatara, Maksimilianus Jati Gani, Elisabeth Adelia Merdeka Wati Gaudensiana Nahak Gerardus Diri Tukan Hedwigh Hendrikus Temai Lejap Helena Kurnia Mauk Hendrawan, Mauritsius Sepis Hildegardis Missa Hironimus Dopo Ida Ayu Putu Sri Widnyani Imakulata Pongge, Maria Jelatu, Marcelina D. Kelen, Agnes Nirek Klau, Anggelina Delviana Klotilda S. Andi Kolin, Angelina Febriani Krisdayanti, Mariana O. Kristina Wada Betu Lado, Ferida Agata Kale Langobelen, Oktofian Ama Dudeng Leki, Salomon Lembata, Michael Ciputra Lengur, Eufrasia Reneilda Arianti Leni Marlina Kanadjo Lentisia Gude Leu, Euvemia P. C Loda, Adelheid Elisabet M. E. Perseveranda M.E Perseveranda M.E. Perseveranda Maksimilianus Paulus Jati Gamatara Manuk, Vinsensia L. Maria Anastasia Ue Maria Augustin Lopes Amaral Maria Bernadethe Mawarni Gelu Wutun Maria Fransiska De Cantal Peni Maria Gracelinda Loe Maria Imakulata Pongge Maria O. Krisdayanti Maria Vianney Meak Mariano Firmansyah Marius Masri Sadipun Martuti Lawalu, Emiliana Mau, Selviana Maximus M Taek Nahak, Eviana Nama, Ermelinda Palan Nani, Paskalis A. Nawa, Alexandro E. Henuk Nay Nimur, Yohana Priskalia Paskalis Andrianus Nani Patricia Rina Florencita Paulus Adrianus K. L. Ratumakin Perseveranda, M. E. Perseveranda, M.E Perseveranda, ME Petronela A. Balol Petrus Fernando Putra Wolla Pongge, Maria Imaculata Pongge, Maria Immaculata Priscilla M. A Hornay Ratumakin, Paulus A. K. L. Renoat, Ronald E. Ridan, Emiliana Rofina M. Rua Rondi, Selviana Muda Sakan, Kornelis Aryanto Salomon Leki Salomon Leki Sape, Natalsya Vandana Sarani M. Tulun Saru, Joaquina Felicia Selfiana Goetha Seran, Apriliani Mariche Silvius Bria Solly Aryza Stanis Man Stefanie Noviega Bribin Burin Susana P. Baso Susanti Indrawati, Agnes Susanti Indrwati, Agnes Taek, Maximus M. Taneo, Brian Taninhelon, Defita Desideria Thaumaet, Barnabas Thomas Ola Langoday Tje Yustin Dima, Enike Turi, Veronika T. D Uri, Falenria Viany Cecilia Pah Wada Betu, Kristina Watu, Engelbertus Gloria Christy Watu, Engelbertus Glory Christy Wella, Bheatrix S. T Yasinta S. Enes Yohanes Petrus Dote Koten