THE RELATIONSHIP BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH FOR TURKEY

Öz

The aim of this study is to clarify the controversial relationship between financial development and economic growth for Turkey. After surveying the related theoretical and empirical literature, the structure and development of the Turkish financial system and economic growth in process of financial integration is examined. To test the relationship between financial development and economic growth, by using quarterly time series data for Turkey between 1988-2012 period, Vector Auto regression Analysis and Granger causality test are applied. The result of the econometric analysis showed that while there is a short run relationship between financial development and economic growth, there is no long run relationship between these variables. Moreover, according to Granger causality test, the direction of causality runs from economic growth to financial development for Turkey.

Anahtar Kelimeler

• Financial Development
• Economic Growth
• Financial Liberalization
• Vector Autoregression analysis
• Granger causality test

THE RELATIONSHIP BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH FOR TURKEY

Öz

ABSTRACT

 

The aim of this study is to clarify the controversial relationship between financial development and economic growth for Turkey. After surveying the related theoretical and empirical literature, the structure and development of the Turkish financial system and economic growth in process of financial integration is examined. To test the relationship between financial development and economic growth, by using quarterly time series data for Turkey between 1988-2012 period, Vector Auto regression Analysis and Granger causality test are applied. The result of the econometric analysis showed that while there is a short run relationship between financial development and economic growth, there is no long run relationship between these variables. Moreover, according to Granger causality test, the direction of causality runs from economic growth to financial development for Turkey.

 

     Key words: Financial Development, Economic Growth, Financial Liberalization, Vector Autoregression analysis, Granger causality test

   JEL: G10, G20, O43

 

ÖZ

 

Bu çalışmanın amacı, finansal gelişme ve ekonomik büyüme arasındaki tartışmalı ilişkiyi Türkiye için açıklığa kavuşturmaktır. İlgili teorik ve uygulamalı literatür incelendikten sonra, Türk finansal sisteminin yapısı ve gelişmesi ile ekonomik büyüme ilişkisi finansal entegrasyon sürecinde incelenmiştir. Finansal gelişme ve ekonomik büyüme arasındaki ilişki, Türkiye için 1988-2012 yılları arasındaki çeyrek dönemlik zaman serisi verileri kullanılarak, VAR analizi ve Granger nedensellik testi ile test edilmiştir. Yapılan ekonometrik analizin sonuçları, finansal gelişme ve ekonomik büyüme arasında kısa dönemli bir ilişki gösterirken, değişkenler arasında uzun dönemli bir ilişki yoktur. Ayrıca, Granger nedensellik testi sonuçlarına göre, nedensellik ilişkisinin yönü Türkiye için ekonomik büyümeden finansal gelişmeye doğrudur.

 

     Anahtar Kelimeler: Finansal Gelişme, Ekonomik Büyüme, Finansal Serbestleşme, Vektör Otoregresyon Analizi, Granger nedensellik testi

   

JEL: G10, G20, O43

Anahtar Kelimeler

• Finansal Gelişme
• Ekonomik Büyüme
• Finansal Serbestleşme
• Vektör Otoregresyon Analizi
• Granger nedensellik testi

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