The purpose of the study is to measure if the sectoral loans lent by deposit (public, private-domestic, private-foreign), participation, and investment banks in Turkey to the real sector contribute to the GDP. Engle-Granger cointegration test was applied to demonstrate the interaction between real sector and finance sector by making use of 44 pieces of data on “Sectoral GDP” and “Sectoral Loans” 2009Q1 through 2019Q4. The findings of the study demonstrate that an increase in sectoral loans lent by public deposit banks to the market contributes to the increase of GDP in all three sectors. The increase in sectoral loans lent by domestic and foreign deposit banks along with development and investment banks, nevertheless, is observed to have no positive effect on the increase of GDP in the agriculture and services industries. Besides, it is understood that loan increases lent by mentioned bank groups to the industry sector do not contribute towards the rise in GDP. It is observed that an increase in sectoral loans extended by participation banks does not contribute to an increase in GDP in any of the three sectors. Based on the findings of the study, it is observed that the loans lent by public deposit banks in Turkey to sectors have a positive impact on economic growth.
Bank Types Credit GDP Growth Engle-Granger Causality Analysis Bank Types, Credit, GDP, Growth, Engle-Granger Causality Analysis
Primary Language | Turkish |
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Subjects | Economics |
Journal Section | Articles |
Authors | |
Publication Date | April 30, 2022 |
Submission Date | February 1, 2022 |
Published in Issue | Year 2022 |