CONTRIBUTION OF ISLAMIC BANKING TO GROWTH: EMPIRICAL ANALYSIS FROM A DIFFERENT PERSPECTIVE

Year 2024, Volume: 8 Issue: 1, 26 - 32, 31.07.2024

Tayfur Bayat , Selim Kayhan

https://doi.org/10.30711/utead.1347748

Abstract

Islamic finance has been practiced in different forms and its practice in modern financial markets became recognized in 1980s and begun to represent a meaningful share of global financial activity by the beginning of 21st century. In this respect, possible effects of Islamic finance on economic growth have been investigated empirically in especially Muslim economies. However, share of Islamic banking and financial institutions in the financial system is still small. For this reason, measuring contribution of Islamic banks on economic growth is still hard.
In this study, we try to measure effects of Islamic banks on the growth of Turkish economy via credit types, business and commercial loans given by Islamic banks. By doing so, we aim to better understand effect of Islamic banks on real economy. In the second step, we try to measure possible effects according to type of ownership of banks and decompose participation banks into two groups, private and public to see if there is a difference between participation banks due to its ownership. Results show that Islamic banks credit industrial sector in expanding periods. But volume of credit to industrial sector contracts in contraction periods. That means Islamic banks behave parallel to conjuncture of the Turkish economy.

Keywords

Turkish industrial sector, Islamic banking, Causality analysis

İSLAM BANKACILIĞININ BÜYÜMEYE KATKILARI: FARKLI BİR PERSPEKTİFTEN AMPİRİK ANALİZ

Abstract

Farklı şekillerde uygulanan İslami finansın modern finans piyasalarında uygulaması 1980'li yıllarda tanınmaya başlamış ve 21. yüzyılın başlarından itibaren küresel finansal faaliyetin anlamlı bir payını temsil etmeye başlamıştır. Bu bağlamda İslami finansın ekonomik büyüme üzerindeki olası etkileri özellikle Müslüman ekonomilerde ampirik olarak araştırılmıştır. Ancak, İslami bankacılık ve finans kurumlarının finansal sistem içindeki payı hala küçüktür. Bu nedenle, İslami bankaların ekonomik büyümeye katkısının ölçülmesi halen zordur.
Bu çalışmada, İslami bankaların verdikleri kredi türleri, işletme ve ticari krediler üzerinden İslami bankaların Türkiye ekonomisinin büyümesi üzerindeki etkileri ölçülmeye çalışılmıştır. Böylece İslami bankaların reel ekonomi üzerindeki etkisinin daha iyi anlaşılması amaçlanmıştır. İkinci adımda, bankaların mülkiyet türlerine göre olası etkileri ölçülmeye çalışılmış ve katılım bankaları özel ve kamu olmak üzere iki gruba ayrılarak katılım bankaları arasında mülkiyetten dolayı bir fark olup olmadığı incelenmiştir. Sonuçlar, İslami bankaların genişleyen dönemlerde sanayi sektörünü kredilendirdiğini göstermektedir. Ancak daralma dönemlerinde sanayi sektörüne verilen kredi hacmi daralmaktadır. Bu, İslami bankaların Türkiye ekonomisinin konjonktürüne paralel hareket ettiği anlamına gelmektedir.

Keywords

Türk imalat sanayi, İslami bankacılık, Nedensellik analizi

References

• Abduh, M. and Omar, M.A. (2012). Islamic banking and economic growth: the Indonesian experience. International Journal of Islamic and Middle-Eastern Finance and Management, 5 (1), 35-47.
• Akın, F. and Kaya, F. (2011). Küresel finans krizi karşısında İslami finans sektörünün mevcut durumuna bir bakış. Finans Politik and Ekonomik Yorumlar, 48(553), 37 – 48.
• Becker, R., Enders, W. and Lee, J. (2006). A stationarity test in the presence of an unknown number of smooth breaks. Journal of Time Series Analysis, 27(3), 381-409.
• Enders, W. and Jones, P. (2016). Grain prices, oil prices, and multiple smooth breaks in a VAR. Studies in Nonlinear Dynamics and Econometrics, 20(4), 399-419.
• Furqani, H. and Mulyany, R. (2009). Islamic banking and economic growth: Empirical evidence from Malaysia. Journal of Economic Cooperation and Development, 2, 59 – 74.
• Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: journal of the Econometric Society, 424-438.
• İbrahim, M. (2010). Contemporary issues in Islamic finance and equity – based financing. BIS Review 49/2010.
• Jobarteh, M. and Ergec, E. H. (2017). Islamic finance development and economic growth: Empirical evidence from Turkey. Türkiye İslam İktisadı Dergisi, 4(1), 31 – 47.
• Khoutem, B. J and Nedra, B. (2012). Islamic participative financial intermediation and economic growth. Journal of Islamic Economics, Banking and Finance 8(3).
• Goaied, M. and Sassi, S. (2010). Financial development, Islamic banking and economic growth: Evidence from MENA region. International Journal of Business and Management Science, 4(2), 105-128.
• Kwiatkowski, D., Phillips, P. C., Schmidt, P., and Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root. Journal of Econometrics, 54(1-3), 159-178.
• Majid, M. S. A. Kassim, S. H. (2015). Assessing the contribution of Islamic finance to economic growth empirical evidence from Malaysia. Journal of Islamic Accounting Business Research, 6(2), 292 – 310.
• Murinde, V. Eng, F.S.H. (1994). Financial development economic growth in Singapore: dem-following or supply-leading?. Applied Financial Economics, 4(6), 391-404.
• Nazlioglu, S., Gormus, N. A. Soytas, U. (2016). Oil prices real estate investment trusts (REITs): Gradual-shift causality volatility transmission analysis. Energy Economics, 60, 168-175.
• Schumpeter, J. A. (1912). The Theory of Economic Development. Cambridge, MA.
• Tabash, M. I. Dhankar, R. S. (2014). Financial Development Economic Growth-- Empirical Evidence from United Arab Emirates. Journal of Emerging Economies Islamic Research, 2(3), 16 – 31.
• Toda, H. Y. Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1-2), 225-250.
• Tunay, B. (2016). Causality relations between Islamic banking economic growth. Yönetim ve Ekonomi, 23(2), 485 – 502.
• Westerlund, J. (2008). Panel cointegration tests of the Fisher effect. Journal of Applied Econometrics, 23(2), 193-233.