RELATIONSHIP BETWEEN INSTITUTIONAL QUALITY AND FINANCIAL DEVELOPMENT: THE CASE OF TÜRKİYE

Year 2024, Volume: 6 Issue: 2, 290 - 303, 28.12.2024

Fatih Yücel , Hilal Budak Biçer

https://doi.org/10.56574/nohusosbil.1570068

Abstract

Institutional quality has an impact on macroeconomic performance through shaping production and exchange activities. Evaluating the effects of institutional structure on the economy is important in determining government policies. Along with the importance given to economic growth, financial development attracts attention in terms of resource creation. There are many studies in national and international literature on the positive effects of positive changes in institutional structure on macroeconomic performance. In this study, it is aimed to examine the relationship between institutional structure and financial development with data from the period between 1995 and 2020 for Turkey. First, the Phillips Perron unit root test was applied to the analysis, and it was determined that the series contained a unit root. In order to determine the cointegration relationship, the Johansen cointegration test was applied, and it was determined that there was no cointegration between the series. VAR Analysis was applied to the series that were stationary in the first difference and did not have a cointegration relationship. It was concluded that financial development was positively affected by institutional quality and economic growth with the impact-response analyses and variance decomposition interpretations.

Keywords

Institutıonal Quality, Financial Development, Türkiye, VAR Analysis

KURUMSAL YAPI VE FİNANSAL GELİŞME İLİŞKİSİ: TÜRKİYE ÖRNEĞİ

Abstract

Kurumsal yapı, üretim ve değişim faaliyetlerini biçimlendirmesi aracılığıyla makroekonomik performans üzerinde etkili olmaktadır. Kurumsal yapının ekonomi üzerinde etkilerinin değerlendirilmesi hükümet politikalarının belirlenmesinde önem arz etmektedir. Ekonomik büyümeye verilen önemle birlikte kaynak yaratılması açısından finansal gelişme konusu açısında dikkat çekmektedir. Kurumsal yapıdaki olumlu değişmelerin makroekonomik performans üzerinde olumlu etkisi olduğuna dair ulusal ve uluslararası literatürde çok sayıda çalışma bulunmaktadır. Bu çalışmada, kurumsal yapı ve finansal gelişme ilişkisi Türkiye için 1995-2020 yılları arasını kapsayan döneme ait verilerle incelemek amaçlanmıştır. Analize ilk olarak Phillips Perron birim kök testi uygulanmış, serilerin birim kök içerdiği tespit edilmiştir. Eşbütünleşme ilişkisini tespit etmek için Johansen eşbütünleşme testi uygulanmış ve seriler arasında eşbütünleşme bulunmadığı saptanmıştır. Birinci farkında durağan olan ve eşbütünleşme ilişkisi barındırmayan serilere VAR Analizi uygulanmıştır. Etki-tepki analizleri ve varyans ayrıştırması yorumlamaları ile finansal gelişmenin kurumsal kalite ve ekonomik büyümeden pozitif olarak etkilendiği sonucuna varılmıştır.

Keywords

Kurumsal Kalite, Finansal gelişme, Türkiye, VAR Analizi

References

• Abaidoo, R., and Agyapong, E. K. (2022). Financial development and institutional quality among emerging economies. Journal of Economics and Development, 24(3), 198-216.
• Acemoglu, D., Johnson, S. ve Robinson, J. A. (2001). The colonial origins of comparative development: An empirical investigation. American Economic Review 91(5), 1369- 1401.
• Acemoglu, D., Johnson, S., Robinson, J., & Thaicharoen, Y. (2003). Institutional causes, macroeconomic symptoms: Volatility, crises and growth. Journal of monetary economics, 50(1), 49-123.
• Acemoglu,D., Robinson, J.A. (2012).Why Nations Fail:The Origins of Power,Prosperity and Poverty. Crown Publishers, NewYork.
• Acemoglu, D., & Robinson, J. (2010). The Role of Institutions in Growth and Development. Review of Economics and Institutions, 1 (2).
• Ali, M. et al. (2020), “Financial Inclusion, Institutional Quality and Financial Development: Empirical Evidence from OIC Countries”, The Singapore Economic Review, doi:10.1142/s0217590820420084.
• Aluko, O. A. & Ibrahim, M. (2020). Institutions and the Financial Development– Economic Growth Nexus in sub‐Saharan Africa. Economic Notes, 49(3), e12163.
• Beck, T., Levine, R., Loayza, N. (1999). Finance and the sources of growth. Journal of Financial Economics, 58(1-2), 261-300.
• Brooks, C. (2008) Introductory Econometrics for Finance. Cambridge University Press, UK.
• Gujarati, D. N. ve Porter, D. C. (2018). Temel Ekonometri (Ü. Şenesen ve G. G. Şenesen, Çev.). Literatür Yayıncılık, İstanbul.
• Gazdar, K., & Cherif, M. (2015). Institutions and the finance–growth nexus: Empirical evidence from MENA countries. Borsa Istanbul Review, 15(3), 137-160
• Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2-3), 231-254.
• Khan, M.A., Kong, D., Xiang, J., Zhang, J. (2020), “Impact of Institutional Quality on Financial Development: Cross-Country Evidence based on Emerging and Growth-Leading Economies”, Emerging Markets Finance and Trade, 56(15).
• Khan, M. A., Khan, M. A., Abdulahi, M. E., Liaqat, I., & Shah, S. S. H. (2019). Institutional quality and financial development: The United States perspective. Journal of Multinational Financial Management, 49, 67-80.
• Khan, H., Khan, S., & Zuojun, F. (2022). Institutional Quality and Financial Development: Evidence from Developing and Emerging Economies. Global Business Review, 23(4), 971-983.
• Khan, M. A., Mate, D., Sadaf, R., Khan, M. A., Popp, J. And Olah, J. (2024). Do institutional quality, innovation and technologies promote financial market development? European Journal of International Management, Vol. 22 (3), 484-507.
• La Porta, R., Lopez-De-Sılanes, F., Shleıfer, A. and Vıshny, R. (1997). “Legal Determinants of External Finance”, Journal of Finance, 52(3): 1131-1150.
• Law, S.H., Azman-Saini, W.N.W. (2012) Institutional quality, governance, and financial development. Econ Gov 13, 217–236
• Le, T. H., Kim, J., & Lee, M. (2015). Institutional Quality, Trade Openness, and Financial Sector Development in Asia: An Empirical Investigation. Emerging Markets Finance and Trade, 52(5), 1047–1059.
• Nawaz, S., Iqbal, N., & Khan, M. A. (2014). The Impact of Institutional Quality on Economic Growth: Panel Evidence. The Pakistan Development Review, 53(1), 15–31.
• North, D. C. (1999). Institutions, Institutional Change ande Economic Performance, Cambridge University Press, Cambridge.
• Oussama, Z., Ahmed, H. & Fatma, H. (2017). Financial Development, Economic Freedom and Economic Growth: New Evidence From Tunisia. Economic Review: Journal of Economics and Business, 15(2), 7-18.
• Phillips, P.C. B ve Perron, P. (1988), “Testing for a Unit Root in Time Series Regression”, Biometrika, 75(2), ss.335 346.
• Pradhan, R. P., Nair, S. M., Arvin, M. B. and Hall, J. H. (2023) Institutional quality, financial development and sustainable economic growth among lower income countries, Natural Resources Forum, 47 (3), 435-483.
• Saadaoui, H., Chtourou, N. (2023). Do Institutional Quality, Financial Development, and Economic Growth Improve Renewable Energy Transition? Some Evidence from Tunisia. Journal of Knowledge Economy, 14, 2927–2958.
• Shiller, R. J. (2012). Finance and Good Society, Economics Books, Princeton University Press, 1 (9652).
• Sghaier, I. M. (2022). The Role of Institutional Quality in Finance-Growth Nexus: Evidence from North African Countries. Journal of the Knowledge Economy, 1-20.
• Tarı, R. (2018) Ekonometri, Umuttepe Yayınları, Kocaeli. Ullah, W., Zubir, A. S. M., & Ariff, A. M. (2024). Exploring the moderating effect of regulatory quality on the relationship between financial development and economic growth/economic volatility for developed and developing countries. Borsa Istanbul Review, 24(5), 934-944.
• Wang, J., Yang, J., & Yang, L. (2023). Do natural resources play a role in economic development? Role of institutional quality, trade openness, and FDI. Resources Policy, 81, 103294.