DOMESTIC CREDIT, FOREIGN DIRECT INVESTMENT AND R&D EXPENDITURE: LONG-RUN RELATIONSHIPS WITH INFLATION IN TÜRKIYE
Öz
Inflation has been a common subject in economics discussions due to its harmful consequences. However, while there are many studies exploring how inflation influences financial development, the discipline of finance ought to thoroughly investigate the connection between inflation and financial growth. There are few studies that consider the effects of financial development on inflation. This research seeks to examine the effects of financial development and innovation activities on Turkey's inflation from 1990 to 2021. The study uses domestic credit and foreign direct investment as measures of financial development. Innovation activities are represented in the model through research and development expenditures. The ARDL model is utilized for analysis. The results indicate that foreign direct investments, domestic loans, and research and development spending have a positive impact on inflation. The empirical results highlight the significance of effective financial market operations over merely the size of financial markets, as well as the alignment of innovation activities with the structure of the economy in combating inflation. These findings are valuable for policymakers addressing inflation challenges.
Anahtar Kelimeler
Inflation, Financial Development, Research and Development Expenditures, ARDL Model
Kaynakça
- Abbey, E. N. (2012). “Inflation and Financial Development: Evidence”. American Journal of Economics and Business Administration, 4(4): 227-236.
- Acharya, V. V., Crosignani, M., Eisert, T., & Eufinger, C. (2020). Zombie Credit and (Dis-) Inflation: Evidence from Europe (No. w27158). National Bureau of Economic Research.
- Alasgarlı, F., & Sekmen, T. (2021). “Asya Ülkelerinde Finansal Gelişme, Ekonomik Büyüme ve Enflasyon İlişkisi”. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 9(2): 19-48.
- Altay, İ., Sayıl, G. B., & Hanedar, A. Ö. (2023). “Enflasyonun Tarihsel Belirleyenleri: Türkiye ve İkinci Dünya Savaşı”. Fiscaoeconomia, 7(Özel Sayı): 260-282.
- Altunöz, U. (2013). “Türkiye’de Enflasyon, Büyüme ve Finansal Derinleşme İlişkisinin Ampirik Analizi”. Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 3(2): 175-194.
- Armantier, O., Koşar, G., Pomerantz, R., Skandalis, D., Smith, K., Topa, G., & Van der Klaauw, W. (2021). “How Economic Crises Affect Inflation Beliefs: Evidence from the Covid-19 Pandemic”. Journal of Economic Behavior & Organization, 189: 443-469.
- Batini, N., & Nelson, E. (2001). “The Lag from Monetary Policy Actions to Inflation: Friedman Revisited”. International Finance, 4(3): 381-400.
- Berber, M., & Artan, S. (2004). “Türkiye'de Enflasyon-Ekonomik Büyüme İlişkisi:(Teori, Literatür ve Uygulama)”. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 18(3-4): 103-117.
- Bittencourt, M. (2011). “Inflation and Financial Development: Evidence from Brazil”. Economic Modelling, 28(1-2): 91-99.
- Chu, A. C., Cozzi, G., Lai, C. C., & Liao, C. H. (2015). “Inflation, R&D, and Growth in an Open Economy”. Journal of International Economics, 96(2): 360-374.