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Financial development and economic growth relationship: An application for the Turkish economy

Year 2019, Issue: 54, 75 - 88, 31.12.2019
https://doi.org/10.18070/erciyesiibd.523605

Abstract

In this study, the
relationship between financial development and economic growth has been tested
by using the data from the Turkish economy. For this purpose, the
contemporaneous time series Johansen cointegration method and Toda-Yamamoto
causality tests that enable to apply conventional Granger causality analysis
under a vector autoregressive model estimation process with the same or
different order integrated time series have been used. The findings obtained
verify a long run stationary relationship between financial development and
real income, and the causality tests applied point out the existence of
causality running from real income towards the level of financial development.


References

  • AHMED, S.M. ve M.I. ANSARİ; (1998), “Financial Sector Development and Economic Growth: The Soth-Asian Experience”, Journal of Asian Economics, 9(3), ss. 503-517.
  • AKİMOV, A., A. WIJEWEERA ve B. DOLLERY; (2009), “Financial Development and Economic Growth: Evidence from Transition Economies”, Applied Financial Economics, 19(12), ss. 999-1008.
  • AL-YOUSİF, Y.K.; (2002), “Financial Development and Economic Growth: Another Look at the Evidence from Developing Countries”, Review of Financial Economics, 11(2), ss. 131-150.
  • BESCİ, Z. ve P. WANG; (1997), “Financial Development and Growth”, FRB of Atlanta Economic Review, 4th Quarter, 82(4), ss. 46-62.
  • BİJLSMA, M, C. Kool ve M. Non; (2018), “The Effect of Financial Development on Economic Growth: A Meta-Analysis”, Applied Economics, 50(57), ss. 6128-6148.
  • CHANG, T.; (2002), “Financial Development and Economic Growth in Mainland China: A Note on Testing Demand-Following or Supply-Leading Hypothesis”, Applied Economics Letters, 9(13), ss. 869-873.
  • COJOCARU, L., E.M. FALARIS, S.D. HOFFMAN ve J.B. MILLER; (2016), “Financial System Development and Economic Growth in Transition Economies: New Empirical Evidene from the CEE and CIS Countries”, Emerging Markets Finance and Trade, 52(1), ss. 223-236.
  • FUFA, T. ve J. KIM; (2018), “Financial Development, Economic Growth and Convergence Clubs”, Applied Economics, 50(68), ss. 6512-6528.
  • GOLDSMITH, R.W.; (1969), Financial Structure and Economic Development, New Haven, CT: Yale University Press.
  • HABIBULLAH, M.S. ve Y.-K. ENG; (2006), “Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries”, Journal of the Asia Pacific Economy, 11(4), ss. 377-393.
  • HARRIS, R. ve R. SOLLIS; (2003), Applied Time Series Modelling and Forecasting, London, England: John Wiley & Sons Ltd.https://evds2.tcmb.gov.tr, erişim tarihi: 05.02.2019.
  • JOHANSEN, S.; (1995), Likelihood-based Inference in Cointegrated Vector Autoregressive Models, Oxford University Press.
  • JOHANSEN, S. ve K. JUSELIUS; (1990), “Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money”, Oxford Bulletin of Economics and Statistics, 52, ss. 169-210.
  • KING, R.G. ve R. LEVINE; (1993), “Finance and Growth: Schumpeter Might Be Right”, Quarterly Journal of Economics, 108, ss. 717-738.
  • KIRKPATRICK, C. ve C. GREEN; (2002), “Finance and Development: An Overview of the Issues”, Journal of International Development, 14(2), ss. 207-209.
  • LEE, J. ve M.C. STRAZICICH; (2003), “Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks”, Review of Economics and Statistics, 85(4), ss. 1082-089.
  • OSTERWALD-LENUM, M.; (1992), “A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics”, Oxford Bulletin of Economics and Statistics, 54, ss. 461-472.
  • PANTULA, S.G.; (1989), “Testing for Unit Rootsin Time Series Data”, Econometric Theory, 5, ss. 256-271.
  • PATRICK, H.T.; (1966), “Financial Development and Economic Growth in Underdeveloped Countries”, Economic Development and Cultural Change, 14(2), ss. 174-189.
  • PRADHAN, R.P., M.B. ARVIN, J.H. HALL ve M. NAIR; (2016), “Innoviation, Financial Development and Economic Growth in Eurozone Countries”, Applied Economics Letters, 23(16), ss. 1141-1144.
  • RAM, R.; (1999), “Financial Development and Economic Growth: Additional Evidence”, Journal of Development Studies, 5(4), ss. 164-174.
  • ROBINSON, J.; (1952), “The Generalization of the General Theory”, In: The Rate of Interest and Other Essays, London: MacMillan, ss. 67-142.
  • SHAN, J.; (2005), “Does Financial Development ‘Lead’ Economic Growth? A Vector Auto-Regression Appraisal”, Applied Economics, 37(12), ss. 1353-1367.
  • SHAN, J. ve A. MORRIS; (2002), “Does Financial Development ‘Lead’ Economic Growth?”, International Review of Applied Economics, 16(2), ss. 153-168.
  • SCHUMPETER, I.A.; (1983), The Theory of Economic Development, Cambridge, MA: Harvard University Press.
  • TODA, H.Y. ve T. YAMAMOTO; (1995), “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes”, Journal of Econometrics, 66(1), ss. 225-250.
  • TUİK; (2016), Türkiye Ulusal Hesaplar Sistemi’nde SNA-2008 ve ESA-2010’un Uygulanması ve Ana Revizyon, Aralık. www.tuik.gov.tr/duyurular/duyuru _3244.pdf (Erişim tarihi: 25.12.2016)
  • YU, J.-S., M.K. HASSAN ve B. SANCHEZ; (2012), “A Re-examination of Financial Development, Stock Markets Development and Economic Growth”, Applied Economics, 44(27), ss. 3479-3489.
  • Çetin, M, Ecevit, E. ve Yucel, A.G. (2018). The impact of economic growth, energy consumption, trade openness, and financial development on carbon emissions: empirical evidence from Turkey. Environmental Science and Pollution Research, 25 (36), 36589-36603.

Finansal gelişme ve ekonomik büyüme ilişkisi: Türkiye ekonomisi için bir uygulama

Year 2019, Issue: 54, 75 - 88, 31.12.2019
https://doi.org/10.18070/erciyesiibd.523605

Abstract

Bu çalışmada finansal
gelişme ve ekonomik büyüme arasındaki ilişki Türkiye ekonomisi verileri ile
sınanmaktadır. Bu amaçla üçer aylık veri sıklığını kullanan 2005Q4 – 2018Q2
inceleme döneminde çağdaş zaman serisi Johansen eşbütünleşim yöntemi ve
geleneksel Granger nedensellik çözümlemesinin bir vektör ardışık bağlanım (VAR)
modeli tahmin süreci altında aynı ya da farklı dereceden bütünleşik zaman
serilerine uygulanmasına olanak sağlayan Toda-Yamamoto nedensellik sınamaları
kullanılmaktadır.  Elde edilen bulgular
finansal gelişme ile reel gelir düzeyi arasında uzun dönemli durağan bir
ilişkiyi doğrulamakta, gerçekleştirilen nedensellik çözümlemeleri reel gelir
düzeyinden finansal gelişmişlik düzeyine doğru bir nedenselliğin varlığına
işaret etmektedir. 

References

  • AHMED, S.M. ve M.I. ANSARİ; (1998), “Financial Sector Development and Economic Growth: The Soth-Asian Experience”, Journal of Asian Economics, 9(3), ss. 503-517.
  • AKİMOV, A., A. WIJEWEERA ve B. DOLLERY; (2009), “Financial Development and Economic Growth: Evidence from Transition Economies”, Applied Financial Economics, 19(12), ss. 999-1008.
  • AL-YOUSİF, Y.K.; (2002), “Financial Development and Economic Growth: Another Look at the Evidence from Developing Countries”, Review of Financial Economics, 11(2), ss. 131-150.
  • BESCİ, Z. ve P. WANG; (1997), “Financial Development and Growth”, FRB of Atlanta Economic Review, 4th Quarter, 82(4), ss. 46-62.
  • BİJLSMA, M, C. Kool ve M. Non; (2018), “The Effect of Financial Development on Economic Growth: A Meta-Analysis”, Applied Economics, 50(57), ss. 6128-6148.
  • CHANG, T.; (2002), “Financial Development and Economic Growth in Mainland China: A Note on Testing Demand-Following or Supply-Leading Hypothesis”, Applied Economics Letters, 9(13), ss. 869-873.
  • COJOCARU, L., E.M. FALARIS, S.D. HOFFMAN ve J.B. MILLER; (2016), “Financial System Development and Economic Growth in Transition Economies: New Empirical Evidene from the CEE and CIS Countries”, Emerging Markets Finance and Trade, 52(1), ss. 223-236.
  • FUFA, T. ve J. KIM; (2018), “Financial Development, Economic Growth and Convergence Clubs”, Applied Economics, 50(68), ss. 6512-6528.
  • GOLDSMITH, R.W.; (1969), Financial Structure and Economic Development, New Haven, CT: Yale University Press.
  • HABIBULLAH, M.S. ve Y.-K. ENG; (2006), “Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries”, Journal of the Asia Pacific Economy, 11(4), ss. 377-393.
  • HARRIS, R. ve R. SOLLIS; (2003), Applied Time Series Modelling and Forecasting, London, England: John Wiley & Sons Ltd.https://evds2.tcmb.gov.tr, erişim tarihi: 05.02.2019.
  • JOHANSEN, S.; (1995), Likelihood-based Inference in Cointegrated Vector Autoregressive Models, Oxford University Press.
  • JOHANSEN, S. ve K. JUSELIUS; (1990), “Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money”, Oxford Bulletin of Economics and Statistics, 52, ss. 169-210.
  • KING, R.G. ve R. LEVINE; (1993), “Finance and Growth: Schumpeter Might Be Right”, Quarterly Journal of Economics, 108, ss. 717-738.
  • KIRKPATRICK, C. ve C. GREEN; (2002), “Finance and Development: An Overview of the Issues”, Journal of International Development, 14(2), ss. 207-209.
  • LEE, J. ve M.C. STRAZICICH; (2003), “Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks”, Review of Economics and Statistics, 85(4), ss. 1082-089.
  • OSTERWALD-LENUM, M.; (1992), “A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics”, Oxford Bulletin of Economics and Statistics, 54, ss. 461-472.
  • PANTULA, S.G.; (1989), “Testing for Unit Rootsin Time Series Data”, Econometric Theory, 5, ss. 256-271.
  • PATRICK, H.T.; (1966), “Financial Development and Economic Growth in Underdeveloped Countries”, Economic Development and Cultural Change, 14(2), ss. 174-189.
  • PRADHAN, R.P., M.B. ARVIN, J.H. HALL ve M. NAIR; (2016), “Innoviation, Financial Development and Economic Growth in Eurozone Countries”, Applied Economics Letters, 23(16), ss. 1141-1144.
  • RAM, R.; (1999), “Financial Development and Economic Growth: Additional Evidence”, Journal of Development Studies, 5(4), ss. 164-174.
  • ROBINSON, J.; (1952), “The Generalization of the General Theory”, In: The Rate of Interest and Other Essays, London: MacMillan, ss. 67-142.
  • SHAN, J.; (2005), “Does Financial Development ‘Lead’ Economic Growth? A Vector Auto-Regression Appraisal”, Applied Economics, 37(12), ss. 1353-1367.
  • SHAN, J. ve A. MORRIS; (2002), “Does Financial Development ‘Lead’ Economic Growth?”, International Review of Applied Economics, 16(2), ss. 153-168.
  • SCHUMPETER, I.A.; (1983), The Theory of Economic Development, Cambridge, MA: Harvard University Press.
  • TODA, H.Y. ve T. YAMAMOTO; (1995), “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes”, Journal of Econometrics, 66(1), ss. 225-250.
  • TUİK; (2016), Türkiye Ulusal Hesaplar Sistemi’nde SNA-2008 ve ESA-2010’un Uygulanması ve Ana Revizyon, Aralık. www.tuik.gov.tr/duyurular/duyuru _3244.pdf (Erişim tarihi: 25.12.2016)
  • YU, J.-S., M.K. HASSAN ve B. SANCHEZ; (2012), “A Re-examination of Financial Development, Stock Markets Development and Economic Growth”, Applied Economics, 44(27), ss. 3479-3489.
  • Çetin, M, Ecevit, E. ve Yucel, A.G. (2018). The impact of economic growth, energy consumption, trade openness, and financial development on carbon emissions: empirical evidence from Turkey. Environmental Science and Pollution Research, 25 (36), 36589-36603.
There are 29 citations in total.

Details

Primary Language Turkish
Journal Section Makaleler
Authors

Levent Korap 0000-0001-6216-5941

Publication Date December 31, 2019
Acceptance Date May 9, 2019
Published in Issue Year 2019 Issue: 54

Cite

APA Korap, L. (2019). Finansal gelişme ve ekonomik büyüme ilişkisi: Türkiye ekonomisi için bir uygulama. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(54), 75-88. https://doi.org/10.18070/erciyesiibd.523605

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