ISLAMIC FINANCE AND ECONOMIC GROWTH: AN ECONOMETRIC APPLICATION ON TURKEY

Yıl 2018, , 67 - 91, 04.07.2018

Emrah Koçak

https://doi.org/10.18070/erciyesiibd.440612

Cited By: 11

Öz

This paper investigates the relationship between Islamic finance and
economic growth for the period 2005: Q4-2015 :Q2 in Turkey. In this context,
firstly, the paper employs unit root tests and cointegration tests with
structural breaks. Then, the paper considers long run impact of Islamic finance
on economic growth in Turkey through dynamic ordinary least squares estimation
and Granger causality test based on vector error correction. The cointegration
test, dynamic ordinary least squares estimator and causality test results show
that Islamic finance has a positive and unidirectional impact on economic
growth in Turkey. This results exhibit that Islamic finance has a significant
effect on economic growth in Turkey.

Anahtar Kelimeler

Islamic Banking and Finance, Economic Growth, Cointegration, Causality, Turkey

İSLAMİ FİNANS VE EKONOMİK BÜYÜME: TÜRKİYE ÜZERİNE EKONOMETRİK BİR UYGULAMA

Öz

Bu
çalışma 2005: Ç4-2015: Ç2 dönemi Türkiye’ de İslami finans ve ekonomik büyüme
arasındaki ilişkiyi araştırmaktadır. Bu kapsamda, öncelikle yapısal kırılmalı
birim kök ve eşbütünleşme testleri kullanılmıştır. Daha sonra İslami finansın
ekonomik büyüme üzerindeki etkisi dinamik en küçük kareler ve vektör hata
düzeltme modeline dayalı Granger nedensellik testi ile değerlendirilmiştir.
Eşbütünleşme, dinamik en küçük kareler ve nedensellik test bulguları Türkiye’
de İslami finansın ekonomik büyüme üzerinde pozitif ve tek yönlü bir etkisi
olduğunu göstermektedir. Bu sonuçlar, Türkiye’de İslami finansın ekonomik
büyüme üzerinde anlamlı bir etkisi olduğunu ortaya koymaktadır.

Anahtar Kelimeler

İslami Bankacılık ve Finans, Ekonomik Büyüme, Eşbütünleşme, Nedensellik, Türkiye

Kaynakça

• ABDUH, Majid M. S. and Salina H. KASSIM; (2015), "Assessing the Contribution of Islamic Finance to Economic Growth: Empirical Evidence from Malaysia", Journal of Islamic Accounting and Business Research, 6 (2), pp. 292-310.
• ABDUH, Muhamad and Nazreen T. CHOWDHURY; (2014), "Does Islamic Banking Matter for Economic Growth in Bangladesh", Journal of Islamic Economics, Banking and Finance, 8(3), pp. 104-113.
• ABDUH, Muhamad; Said IBRAHIM and Mohd OMAR; (2012), "A Study on Finance-growth Nexus in Dual Financial System Countries: Evidence from Bahrain", World Applied Sciences Journal, 20 (8), pp. 1166-1174.
• ABDUH, Muhammad and Raditya SUKMANA; (2013), "The Role of Stock Markets in Promoting Economic Growth in Malaysia: Islamic vis-à-vis Conventional", Global Review of Islamic Economics and Business, 1 (1), pp. 1-12.
• ABU-BADER, Suleiman and Aamer S. ABU-QARN; (2008), "Financial Development and Economic Growth: Empirical Evidence from Six MENA Countries", Review of Development Economics, 12 (4), pp. 803-817.
• AHMAD, Ziuaddin; (2003), “Riba Teorisi”, Çev.: Ali Rıza GÜL, Ankara Üniversitesi İlahiyat Fakültesi Dergisi, 5 (1), ss.453-465.
• AHMAD, Wahida and David PRENTICE; (2015), “How Large are Productivity Differences between Islamic and Conventional Banks?”, Centre for Finance, Credit and Macroeconomics Working Paper, No: 15/09.
• AL-OQOOL, Mohammed A.; Reem OKAB and Mohammed BASHAYREH; (2014), "Financial Islamic Banking Development and Economic Growth: A Case Study of Jordan", International Journal of Economics and Finance, 6 (3), pp. 72-79.
• APAYDIN, Fulya; (2015), "Financialization and the Push for Non-state Social Service Provision: Philanthropic Activities of Islamic and Conventional Banks in Turkey", Forum for Development Studies, 42 (3), pp. 441-465.
• BAGEHOT, Walter; (1873), Lombard Street: A Description of the Money Market, London: Henry S. King Corporation.
• BİLGİLİ, Faik; (2012), “The Impact of Biomass Consumption on CO2 Emissions: Cointegration Analyses with Regime Shifts”, Renewable and Sustainable Energy Reviews, 16 (7), pp. 5349-5354.
• CAPORALE, G. Maria and Mohamad Husam HELMI; (2016), “Islamic Banking, Credit and Economic Growth: Some Empirical Evidence”, Economics and Finance Working Paper Series, No:16/02.
• CIHAK, Martin and Heiko HESSE; (2010), “Islamic Banks and Financial Stability: An Empirical Analysis”, Journal of Financial Services Research, 38, pp. 95-113.
• CHAPRA, M. Umer; (2008), “The Global Financial Crisis: Can Islamic Finance Help?”, in J. LANGTON; C. TRULLOLS and A.Q.
• TURKISTANI (Eds), Islamic Economics and Finance, London: Palgrave Macmillan, IE Business Publishing.
• CHONG, Beng Soon and Ming-Hua LIU; (2009), "Islamic Banking: Interest-free or Interest-based?”, Pacific-Basin Finance Journal, 17(1), pp. 125-144.
• DALY, Saida and Frikha, MOHAMED; (2016), “Banks and Economic Growth in Developing Countries: What about Islamic Banks?”, Cogent Economics & Finance, 4 (1), pp. 1-26.
• DEMİRALP, Seda and Selva DEMİRALP; (2015), "The Rational Islamic Actor? Evidence from Islamic Banking", New Perspectives on Turkey, 52, pp. 3-27.
• DEMİRGÜÇ-KUNT, Aslı; (2004), Financial Structure and Economic Growth: A Cross-country Comparison of Banks, Markets and Development, Cambridge, Massachusetts London: MIT press.
• DICKEY, A. David ve Wayne A. FULLER; (1981), “Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root”, Econometrica: Journal of the Econometric Society, 49 (4), pp. 1057-1072.
• ECHCHABI, Abdelghani and Dhekra AZOUZI; (215), "Islamic Finance Development and Economic Growth Nexus: The Case of the United Arab Emirates (UAE)", American Journal of Economics and Business Administration, 7 (3), pp. 106-111.
• EL-GALFY, Ahmed ve Khiyar, K. ABDALLA; (2012), “Islamic Banking and Economic Growth: A Review”, Journal of Applied Business Research, 28 (5), pp. 943-955.
• ELLHACHEMI, Hacine G. and Othman M. AZMI; (2015), “Empirical Analysis on the Nexus Between Islamic Banking Development in Terms of Size and Activity, Economic Growth and Financial Crisis in Islamic Rebublic of Iran”, International Journal of Scientific Research and Innovative Technology, 2 (6), pp. 27-44.
• ELLAHI, Nazima and Rabia SAGHIR; (2014), "Analyzing the Empirical Link between Islamic Finance and Growth of Real Output: A Time Series Application to Pakistan", Academic Research International, 5 (6), pp. 180-187.
• ENGLE, Robert F. and Clive WJ GRANGER; (1987), "Co-integration and Error Correction: Representation, Estimation and Testing", Econometrica: Journal of the Econometric Society, 55 (2), pp. 251-276.
• ERNST & YOUNG; (2013), “The World Islamic Banking Competitiveness Report 2013–2014”, The Transition Begins, Ernst & Young, Bahrain, Internet ddress:http://www.ey.com/Publication/vwLUAssets/World_ Islamic_Banking_Competitiveness_Report_201314/$FILE/World%20Islamic%20Banking%20Competitiveness%20Report%202013-14.pdf, Date of Access: 10.11.2016.
• FARAHANI, Yazdan G. and Seyed M. S. SADR; (2012), “Analysis of Islamic Bank's Financing and Economic Growth: Case Study Iran and Indonesia”, Journal of Economic Cooperation & Development, 33 (4), pp. 1-24.
• FURQANI, Hafas ve Ratna MULYANY; (2009), “Islamic Banking and Economic Growth: Empirical Evidence from Malaysia”, Journal of Economic Cooperation and Development, 30 (2), pp. 59-74.
• GOLDSMITH, Raymond; (1969), Financial Structure and Development, New Haven, CT, Yale University Press.
• GRASSA, Rihab and Kaouthar GAZDAR; (2014), "Financial Development and Economic Growth in GCC Countries: A Comparative Study between Islamic and Conventional Finance", International Journal of Social Economics, 41 (6), pp. 493-514.
• GREGORY, Allan W. and Bruce E. HANSEN; (1996), “Residual-based Tests for Cointegration in Models with Regime Shifts”, Journal of Econometrics, 70 (1), pp. 99-126.
• HASAN, Maher and DRIDI, Jemma; (2010), “The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study”, IMF Working Paper, WP/10/201.
• HATEMI-J, Abdulnasser; (2008), “Tests for Cointegration with Two Unknown Regime Shifts with an Application to Financial Market Integration”, Empirical Economics, 35 (3), pp. 497-505.
• IMAM, Patrick A. and Kangni KPODAR; (2015), “Is Islamic Banking Good for Growth?”, International Monetary Fund Working Paper, No:15-81.
• IMF; (2010), “IMF Survey: Islamic Banks: More Resilient to Crisis?”, Internet Address:https://www.imf.org/en/News/Articles/2015/09/28/04/53/sores100410a, Date of Access: 02.05.2017
• JOHANSEN, Søren; (1988), “Statistical Analysis of Cointegration Vectors”, Journal of Economic Dynamics and Control, 12 (2), pp. 231-254.
• JOHANSEN, Søren and Katarina JUSELIUS; (1990), "Maximum Likelihood Estimation and Inference on Cointegration—with Applications to the Demand for Money", Oxford Bulletin of Economics and Statistics, 52 (2), pp. 169-210.
• KAMMER, Alfred and IMF Staff Team; (2010), “Islamic Finance: Opportunities, Challenges and Policy Options”, IMF Discussion Paper, SDN/15/05.
• KASSIM, Salina; (2016), “Islamic Finance and Economic Growth: The Malaysian Experience”, Global Finance Journal, 30, pp. 66-76.
• KHAN M. Mansoor and Ishaq M. BHATTI; (2008), “Islamic Banking and Finance: On Its Way to Globalization”, Managerial Finance, 34 (10), pp. 708-725.
• KHOUTEM, Ben Jedidia and Ben Ayed NEDRA; (2012), "Islamic Participative Financial Intermediation and Economic Growth", Journal of Islamic Economics, Banking and Finance, 3(8), pp. 44-59.
• KUZNETS, Simon; (1955), “Economic Growth and Income Inequality”, The American Economic Review, 45 (1), pp. 1-28.
• LUCAS, Robert E.; (1988), “On the Mechanics of Economic Development”, Journal of Monetary Economics, 22 (1), pp. 3-42.
• MANAP, Turkhan Ali Abdul; Muhamad ABDUH and Mohd A. OMAR; (2012), “Islamic Banking-Growth Nexus: Evidence from Toda-Yamamoto and Bootstrap Granger Causality Test”, Journal of Islamic Finance, 1 (1), pp. 59-66.
• MCKINNON, Ronald I.; (1973), Money and Capital in Economic Development, Washington, DC: Brookings Institution.
• MOHD, Yusof, R. and Mejda BAHLOUS; (2013), “Islamic Banking and Economic Growth in GCC & East Asia Countries: A Panel Cointegration Analysis”, Journal of Islamic Accounting and Business Research, 4 (2), pp. 151-172.
• NARAYAN, Paresh K. and Stephan POPP; (2010), “A New Unit Root Test with Two Structural Breaks in Level and Slope at Unknown Time”, Journal of Applied Statistics, 37 (9), 1425-1438.
• OMAR, Wan Ahmad W.; Fauzi HUSSIN and G.H. ASAN ALI; (2015), “The Empirical Effects of Islam on Economic Development in Malaysia”, Research in World Economy, 6 (1), pp. 99-111.
• PARLAKKAYA, Raif Ç. ve Suna AKTAN; (2011), “Finansal Rasyoların Katılım Bankaları ve Geleneksel Bankalar Arasında Bir Tasnif Aracı Olarak Kullanımı: Türkiye Örneği”, Ege Akademik Bakış, 11 (3), ss. 397-405.
• PATRICK, Hugh T.; (1966); “Financial Development and Economic Growth in Underdeveloped Countries”, Economic Development and Cultural Change, 14 (2), pp. 174-189.
• PHILLIPS, Peter C. and Pierre PERRON; (1988), “Testing for a Unit Root in Time Series Regression”, Biometrika, 75 (2), pp. 335-346.
• PHILLIPS, Peter C.; (1987), “Time Series Regression with A Unit Root”, Econometrica: Journal of the Econometric Society, 55 (2), pp. 277-301.
• ROBINSON, Joan; (1952), The Generalization of the General Theory, In: the Rate of Interest and Other Essays, London: MacMillan.
• SAKARYA, Burçhan ve Yasemin KAYA; (2013), “Katılım Bankaları Mevduat Bankalarından Farklı mı Çalışıyor?, University Library of Munich, No. 69196, İnternet Adresi: https://mpra.ub.uni-muenchen.de/69196/1/ MPRA_paper_69196.pdf, Erişim Tarihi: 14.11.2016.
• SCHUMPETER, Joseph A.; (1912), The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle, Trans. Redvers Opie, Cambridge, MA: Harvard University Press.
• STOCK, James H. and Mark W. WATSON; (1993), “A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems”, Econometrica: Journal of the Econometric Society, 61 (4), pp. 783-820.
• UPPAL, Jamshed Y. and Inayat U. MANGLA; (2014), “Islamic Banking and Finance Revisited after Forty Years: Some Global Challenges”, Journal of Finance Issue, 13 (1), pp. 1-12.