Research Article
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Year 2019, Volume: 8 Issue: 1, 97 - 125, 01.08.2019

Abstract

References

  • Abu-Bader, S. ve Abu-Qarn, A. (2006). Financial development and economic growth nexus: time series evidence from middle eastern and north african countries. MPRA Discussion Paper No: 972, https://mpra.ub.uni-muenchen.de/972/1/MPRA_paper_972.pdf (Erişim tarihi: 10.02.2019).
  • Ak, M. Z., Altıntaş, N. ve Şimşek, A. S. (2016). Türkiye’de finansal gelişme ve ekonomik büyüme ilişkisinin nedensellik analizi. Doğuş Üniversitesi Dergisi, 17 (2), 151-160.
  • Altıner, A. ve Bozkurt, E. (2018). N11 ülkelerinde finansal gelişme ve ekonomik büyüme: panel veri analizi. Uluslararası Ekonomi, İşletme ve Politika Dergisi, 2 (2), 197-212.
  • Artan, S. (2007). Finansal kalkınmanın büyümeye etkileri: literatür ve uygulama. İktisat İşletme ve Finans, 22 (252), 70-89.
  • Asteriou, D. ve Spanos, K. (2018). The relationship between financial development and economic growth during the recent crisis: evidence from the eu. Finance Research Letters (in Press). https://doi.org/10.1016/j.frl.2018.05.011
  • Barro, R.J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106 (2), 407-443.
  • Barro, R.J. ve Sala-i Martin, X. (2004). Economic growth. London: MIT Press.
  • Bozoklu, Ş. ve Yılancı, V. (2013). Finansal gelişme ve iktisadi büyüme arasındaki nedensellik ilişkisi: gelişmekte olan ekonomiler için analiz. Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 28 (2), 161-187.
  • Calderón, C. ve Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of Development Economics, 72 (1), 321-334.
  • Coşkun, M., Temizel, F. ve Taylan, A. S. (2009). Bankacılık sektörü hisse senedi getirileri ile ekonomik büyüme arasındaki ilişki: Türkiye örneği. Kocaeli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 5 (7), 1-18.
  • Çeştepe, H. ve Yıldırım, E. (2016). Türkiye’de finansal gelişme ve ekonomik büyüme ilişkisi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 12 (Özel Sayı: 16), 12-26.
  • Dudian, M. ve Popa, R. A. (2013). Financial development and economic growth in central and eastern europe. Theoretical and Applied Economics, 20 (8/585), 59-68.
  • Greenwood, J. ve Jovanovic, B. (1990). Financial development, growth and the distribution of income. Journal of Political Economy, 98 (5), 1076-1107.
  • Güneş, S. (2013). Finansal gelişmişlik ve büyüme arasındaki nedensellik testi: Türkiye örneği. Doğuş Üniversitesi Dergisi, 14 (1), 73-85.
  • Kar, M. ve Pentecost, E. (2000). The direction of causality between financial development and economic growth in turkey: further evidence. Economic Research Paper, No: 00/27. Department of Economics, Loughborough University.
  • King, R.G. ve Levine, R. (1993a). Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 108 (3), 717-737.
  • King, R.G. ve Levine, R. (1993b). Finance, entrepreneurship and growth: theory and evidence. Journal of Monetary Economics, 32 (3), 513-542.
  • La Porta, R., Lopez-De-Silanes, F., Shleifer, A. ve Vishny, R.W. (1997). Legal determinants of external finance. The Journal of Finance, 52 (3), 1131-1150.
  • Levine, R. (1991). Stock markets, growth and tax policy. Journal of Finance, 46 (4), 1445-1465.
  • Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of Economic Literature, 35 (2), 688-726.
  • Levine, R. ve Zervos, S. (1998). Capital control liberalization and stock market development. World Development, 26 (7), 1169-1183.
  • Lewis, W.A. (1955). The theory of economic growth. London, Allen and Unwin.
  • Lucas, R.E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22 (1), 3-42.
  • Luintel, K., Khan, M., Leon-Gonzalez, R. and Li, G. (2016). Financial development, structure and growth: new data, method and results. Journal of International Financial Markets, Institutions and Money, 43, 95-112.
  • Manga, M., Destek, M.A., Tekeoğlu, M. ve Düzakın, E. (2016). Ekonomik büyüme ve finansal gelişme ilişkisi: Türkiye örneği. International Conference on Eurasian Economies, Kaposvâr, Hungary, 29-31 Ağustos 2016, ss. 814-820. ISBN: 978-975-6319-26-0. S. Sarı, A.H. Gencer ve İ. Sözen (Eds.).
  • Obradović, S. ve Grbić, M. (2015). Causality relationship between financial intermediation by banks and economic growth: evidence from serbia. Prague Economic Papers, 24 (1), 60-72.
  • Oktayer, A. (2007). Finansal derinleşmenin ekonomik performans üzerine etkileri: teori ve Türkiye uygulaması. (Yayımlanmamış Doktora Tezi). İstanbul: Yıldız Teknik Üniversitesi.
  • Ono, S. (2017). Financial development and economic growth nexus in Russia. Russian Journal of Economics, 3 (3), 321-332.
  • Ouyang, Y. ve Li, P. (2018). On the nexus of financial development, economic growth, and energy consumption in china: new perspective from a gmm panel var approach. Energy Economics, 71, 238-252.
  • Özcan, B. ve Arı, A. (2011). Finansal gelişme ve ekonomik büyüme arasındaki ilişkinin ampirik bir analizi: Türkiye örneği. Business and Economics Research Journal, 2 (1), 121-142.
  • Pagano, M. (1993). Financial markets and growth: an overview. European Economic Re-view, 37 (2-3), 613-622.
  • Patrick, H.T. (1966). Financial development and economic growth in underdeveloped countries. Economic Development and Cultural Change, 14 (2), 174-189.
  • Petkovski, M. ve Kjosevski, J. (2014). Does banking sector development promote economic growth? an empirical analysis for selected countries in central and south eastern Europe. Economic Research, 27 (1), 55-66.
  • Roubini, N. ve Sala-i Martin, X. (1992). Financial repression and economic growth. Journal of Development Economics, 39 (1), 5-30.
  • Sağlam. Y. ve Sönmez, F. (2017). Finansal gelişme ve ekonomik büyüme arasındaki ilişki: Avrupa geçiş ekonomileri örneği. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 12 (1), 121-140.
  • Saint-Paul, G. (1992). Technological choice, financial markets and economic development. European Economic Review, 36 (4), 763-781.
  • Samargandia, N., Fidrmuc, J. ve Ghosh, S. (2015). Is the relationship between financial development and economic growth monotonic? evidence from a sample of middle-income countries. World Development, 68, 66-81.
  • Schumpeter, J. (1934[1912]). The theory of economic development: an inquiry into profits, capital, credit, interest and the business cycle (2nd ed.). Cambridge: Harvard University Press. (English translation of 1926 2nd edition of Theorie der Wirtschaftlichen Entwicklung).
  • Sevüktekin, M. & Çınar, M. (2014). Ekonometrik zaman serileri analizi. Bursa: Dora.
  • Shan, J. (2005). Does financial development ‘lead’ economic growth: a vector auto-regression appraisal. Applied Economics, 37 (12), 1353-1367.
  • Sönmez, F. ve Sağlam, Y. (2018). Finansal gelişme ve ticari açıklık ile ekonomik büyüme arasındaki ilişki: avrupa dönüşüm ekonomileri örneği. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 18 (4), 59-72.
  • Stern, N. (1989). The economics of development: a survey. Economic Journal, 99 (397), 597-685.
  • Türedi, S. ve Berber, M. (2010). Finansal kalkınma, ticari açıklık ve ekonomik büyüme arasındaki ilişki: türkiye üzerine bir analiz. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 35, 301-316.
  • Yapraklı, S. (2007). Ticari ve finansal dışa açıklık ile ekonomik büyüme arasındaki ilişki: türkiye üzerine bir uygulama. İstanbul Üniversitesi İktisat Fakültesi Ekonometri ve İstatistik Dergisi, (5), 67-89.
  • Yılmaz, Ö. ve Kaya, V. (2006). Finansal kalkınma ve iktisadi büyüme arasındaki nedensellik. İktisat, İşletme ve Finans, 21 (244), 120-131.

FINANCIAL DEEPENING AND ECONOMIC GROWTH: A CASE OF TURKEY

Year 2019, Volume: 8 Issue: 1, 97 - 125, 01.08.2019

Abstract



In this study, the relationship
between economic growth (EG) and financial deepening (FD) in Turkey was explored
by using the yearly data belongs to GDP, Bonds and domestic credits
for
the period between 1994 – 2017.  “LSQ Method, Variance Inflation Factor Test,
Normality Histogram Test, Correlogram Q-Statistics Test and Heteroscedasticity Test” were employed and results indicated that the
variables and the model are significant. Granger causality analysis was
conducted to define the short-term causality among the variables. It is concluded: (a)
there is a positive bidirectional causality between economic growth and
domestic credit provided by financial sector, (b) there is a positive
unidirectional causality from bonds to economic growth and (c) there is not a
relationship between domestic credits and bonds. To investigate whether a
long-term relationship among the series, “Johansen Cointegration Test” was
employed. The results indicated that there is a long-term relationship between
the economic growth and financial development. By implementing “Variance
Decomposition Technique”, it is concluded that economic growth is explained by 67% GDP, 8% BONDS and by 23%
CREDIT. 
The results of this research support the
Mutual Interaction Hypothesis that asserts a bidirectional relationship between
FD and EG and in this context, financial deepening has an important place in
terms of sustainable economic growth.

References

  • Abu-Bader, S. ve Abu-Qarn, A. (2006). Financial development and economic growth nexus: time series evidence from middle eastern and north african countries. MPRA Discussion Paper No: 972, https://mpra.ub.uni-muenchen.de/972/1/MPRA_paper_972.pdf (Erişim tarihi: 10.02.2019).
  • Ak, M. Z., Altıntaş, N. ve Şimşek, A. S. (2016). Türkiye’de finansal gelişme ve ekonomik büyüme ilişkisinin nedensellik analizi. Doğuş Üniversitesi Dergisi, 17 (2), 151-160.
  • Altıner, A. ve Bozkurt, E. (2018). N11 ülkelerinde finansal gelişme ve ekonomik büyüme: panel veri analizi. Uluslararası Ekonomi, İşletme ve Politika Dergisi, 2 (2), 197-212.
  • Artan, S. (2007). Finansal kalkınmanın büyümeye etkileri: literatür ve uygulama. İktisat İşletme ve Finans, 22 (252), 70-89.
  • Asteriou, D. ve Spanos, K. (2018). The relationship between financial development and economic growth during the recent crisis: evidence from the eu. Finance Research Letters (in Press). https://doi.org/10.1016/j.frl.2018.05.011
  • Barro, R.J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106 (2), 407-443.
  • Barro, R.J. ve Sala-i Martin, X. (2004). Economic growth. London: MIT Press.
  • Bozoklu, Ş. ve Yılancı, V. (2013). Finansal gelişme ve iktisadi büyüme arasındaki nedensellik ilişkisi: gelişmekte olan ekonomiler için analiz. Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 28 (2), 161-187.
  • Calderón, C. ve Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of Development Economics, 72 (1), 321-334.
  • Coşkun, M., Temizel, F. ve Taylan, A. S. (2009). Bankacılık sektörü hisse senedi getirileri ile ekonomik büyüme arasındaki ilişki: Türkiye örneği. Kocaeli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 5 (7), 1-18.
  • Çeştepe, H. ve Yıldırım, E. (2016). Türkiye’de finansal gelişme ve ekonomik büyüme ilişkisi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 12 (Özel Sayı: 16), 12-26.
  • Dudian, M. ve Popa, R. A. (2013). Financial development and economic growth in central and eastern europe. Theoretical and Applied Economics, 20 (8/585), 59-68.
  • Greenwood, J. ve Jovanovic, B. (1990). Financial development, growth and the distribution of income. Journal of Political Economy, 98 (5), 1076-1107.
  • Güneş, S. (2013). Finansal gelişmişlik ve büyüme arasındaki nedensellik testi: Türkiye örneği. Doğuş Üniversitesi Dergisi, 14 (1), 73-85.
  • Kar, M. ve Pentecost, E. (2000). The direction of causality between financial development and economic growth in turkey: further evidence. Economic Research Paper, No: 00/27. Department of Economics, Loughborough University.
  • King, R.G. ve Levine, R. (1993a). Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 108 (3), 717-737.
  • King, R.G. ve Levine, R. (1993b). Finance, entrepreneurship and growth: theory and evidence. Journal of Monetary Economics, 32 (3), 513-542.
  • La Porta, R., Lopez-De-Silanes, F., Shleifer, A. ve Vishny, R.W. (1997). Legal determinants of external finance. The Journal of Finance, 52 (3), 1131-1150.
  • Levine, R. (1991). Stock markets, growth and tax policy. Journal of Finance, 46 (4), 1445-1465.
  • Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of Economic Literature, 35 (2), 688-726.
  • Levine, R. ve Zervos, S. (1998). Capital control liberalization and stock market development. World Development, 26 (7), 1169-1183.
  • Lewis, W.A. (1955). The theory of economic growth. London, Allen and Unwin.
  • Lucas, R.E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22 (1), 3-42.
  • Luintel, K., Khan, M., Leon-Gonzalez, R. and Li, G. (2016). Financial development, structure and growth: new data, method and results. Journal of International Financial Markets, Institutions and Money, 43, 95-112.
  • Manga, M., Destek, M.A., Tekeoğlu, M. ve Düzakın, E. (2016). Ekonomik büyüme ve finansal gelişme ilişkisi: Türkiye örneği. International Conference on Eurasian Economies, Kaposvâr, Hungary, 29-31 Ağustos 2016, ss. 814-820. ISBN: 978-975-6319-26-0. S. Sarı, A.H. Gencer ve İ. Sözen (Eds.).
  • Obradović, S. ve Grbić, M. (2015). Causality relationship between financial intermediation by banks and economic growth: evidence from serbia. Prague Economic Papers, 24 (1), 60-72.
  • Oktayer, A. (2007). Finansal derinleşmenin ekonomik performans üzerine etkileri: teori ve Türkiye uygulaması. (Yayımlanmamış Doktora Tezi). İstanbul: Yıldız Teknik Üniversitesi.
  • Ono, S. (2017). Financial development and economic growth nexus in Russia. Russian Journal of Economics, 3 (3), 321-332.
  • Ouyang, Y. ve Li, P. (2018). On the nexus of financial development, economic growth, and energy consumption in china: new perspective from a gmm panel var approach. Energy Economics, 71, 238-252.
  • Özcan, B. ve Arı, A. (2011). Finansal gelişme ve ekonomik büyüme arasındaki ilişkinin ampirik bir analizi: Türkiye örneği. Business and Economics Research Journal, 2 (1), 121-142.
  • Pagano, M. (1993). Financial markets and growth: an overview. European Economic Re-view, 37 (2-3), 613-622.
  • Patrick, H.T. (1966). Financial development and economic growth in underdeveloped countries. Economic Development and Cultural Change, 14 (2), 174-189.
  • Petkovski, M. ve Kjosevski, J. (2014). Does banking sector development promote economic growth? an empirical analysis for selected countries in central and south eastern Europe. Economic Research, 27 (1), 55-66.
  • Roubini, N. ve Sala-i Martin, X. (1992). Financial repression and economic growth. Journal of Development Economics, 39 (1), 5-30.
  • Sağlam. Y. ve Sönmez, F. (2017). Finansal gelişme ve ekonomik büyüme arasındaki ilişki: Avrupa geçiş ekonomileri örneği. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 12 (1), 121-140.
  • Saint-Paul, G. (1992). Technological choice, financial markets and economic development. European Economic Review, 36 (4), 763-781.
  • Samargandia, N., Fidrmuc, J. ve Ghosh, S. (2015). Is the relationship between financial development and economic growth monotonic? evidence from a sample of middle-income countries. World Development, 68, 66-81.
  • Schumpeter, J. (1934[1912]). The theory of economic development: an inquiry into profits, capital, credit, interest and the business cycle (2nd ed.). Cambridge: Harvard University Press. (English translation of 1926 2nd edition of Theorie der Wirtschaftlichen Entwicklung).
  • Sevüktekin, M. & Çınar, M. (2014). Ekonometrik zaman serileri analizi. Bursa: Dora.
  • Shan, J. (2005). Does financial development ‘lead’ economic growth: a vector auto-regression appraisal. Applied Economics, 37 (12), 1353-1367.
  • Sönmez, F. ve Sağlam, Y. (2018). Finansal gelişme ve ticari açıklık ile ekonomik büyüme arasındaki ilişki: avrupa dönüşüm ekonomileri örneği. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 18 (4), 59-72.
  • Stern, N. (1989). The economics of development: a survey. Economic Journal, 99 (397), 597-685.
  • Türedi, S. ve Berber, M. (2010). Finansal kalkınma, ticari açıklık ve ekonomik büyüme arasındaki ilişki: türkiye üzerine bir analiz. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 35, 301-316.
  • Yapraklı, S. (2007). Ticari ve finansal dışa açıklık ile ekonomik büyüme arasındaki ilişki: türkiye üzerine bir uygulama. İstanbul Üniversitesi İktisat Fakültesi Ekonometri ve İstatistik Dergisi, (5), 67-89.
  • Yılmaz, Ö. ve Kaya, V. (2006). Finansal kalkınma ve iktisadi büyüme arasındaki nedensellik. İktisat, İşletme ve Finans, 21 (244), 120-131.
There are 45 citations in total.

Details

Primary Language English
Journal Section Research Articles
Authors

Kemal Erkişi 0000-0001-7197-8768

Turgay Ceyhan This is me 0000-0001-5225-297X

Publication Date August 1, 2019
Submission Date May 2, 2019
Published in Issue Year 2019 Volume: 8 Issue: 1

Cite

APA Erkişi, K., & Ceyhan, T. (2019). FINANCIAL DEEPENING AND ECONOMIC GROWTH: A CASE OF TURKEY. Trakya Üniversitesi İktisadi Ve İdari Bilimler Fakültesi E-Dergi, 8(1), 97-125.

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