Such reviews or reports monitor and assess financial vulnerabilities and risks and serve as an early warning mechanism. In addition, the underlying analysis in them provides a basis for recommendations for pre-emptive policy actions. These publications are thus an important means for central banks to contribute to financial stability.
The model has been specified as follows: Ln (AGDP) = 10.52 + 0.22Ln (Acredit(–1)) (22.89)* (5.61)* Adj R2 = 0.91 DW = 1.52 Where, AGDP = GDP from agriculture and allied activities at constant prices Acredit = Credit for agriculture and allied activities deflated by GDP deflator with one year lag * Significance at 1 per cent level of significance Though the unit root test revealed that both series were integrated of order 1, we did not adopt the conventional Box-Jenkins methodology of differencing the series in order to present the elasticity estimates.