Effect of Institutional Quality Factors on Financial Development: The Case of Islamic Cooperation Organization Countries

Year 2021, Volume: 29 Issue: 50, 465 - 484, 31.10.2021

Muhammed Kasım , Gökhan Özkul , Dilek Çetin

https://doi.org/10.17233/sosyoekonomi.2021.04.21

Cited By: 2

Abstract

The main aim of this study is to analyse the impact of institutional factors on financial development in Islamic Cooperation Organization Countries. The ratio of domestic credit given to the private sector to GDP is used as a proxy for financial development; income level, broad money, foreign direct investment, trade openness, saving rate, inflation, unemployment rate, exchange rate, final government expenditure, and external debt are utilized as determinants of financial development; corruption index and four sub-levels of economic freedom is used as a proxy for the institutional quality level. According to the linear dynamic panel data estimation by using 1995-2018 panel data, it has been found that the reduction of corruption, the rule of law, regulations effectiveness, and open markets positively affected financial development; however, government size negatively influenced financial development.

Keywords

Financial Development, Institutional Quality Factors, Islamic Cooperation Organization, Panel Data Analysis, Linear Dynamic Panel Model

Kurumsal Kalite Faktörlerinin Finansal Gelişmişlik Üzerindeki Etkisi: İslam İşbirliği Teşkilatı Ülkeleri Örneği

Abstract

Bu çalışmanın amacı, kurumsal kalite faktörlerinin finansal gelişmişlik üzerindeki etkisini İslam İşbirliği Teşkilatı ülkelerinde incelemektir. Finansal gelişmişliğin göstergesi olarak yurtiçindeki finansal sektör tarafından özel sektöre kullandırılan kredilerin GSYH’ye oranı; finansal gelişmişliğin belirleyicisi olarak gelir düzeyi, para arzı, yabancı sermaye net girişi, ticaret açıklığı, tasarruf oranı, enflasyon, işsizlik, döviz kuru, devlet harcamaları ve dış borç; kurumsal kalite düzeyinin göstergesi olarak yolsuzluk endeksi ve ekonomik özgürlük endeksinin dört alt unsuru kullanılmıştır. 1995-2018 yıllarına ait panel veri kullanılarak elde edilen doğrusal dinamik panel veri tahmin sonuçlarına göre; yolsuzluğun azalmasının ve hukukun üstünlüğü, mevzuat etkinliği, piyasaların açıklığının finansal gelişmişliği pozitif, devlet büyüklüğünün ise negatif etkilediği bulunmuştur.

Keywords

Finansal Gelişmişlik, Kurumsal Kalite Faktörleri, İslam İşbirliği Teşkilatı, Panel Veri Analizi, Doğrusal Dinamik Model

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