ECONOMIC GROWTH AND FINANCIAL DEVELOPMENT IN DEVELOPING COUNTRIES: AN EMPIRICAL INVESTIGATION USING PANEL CAUSALITY ANALYSIS OF CANNING AND PEDRONI

Öz

This study aims to investigate the causal relationship between financial development (FD) and economic growth (EG) from 1990 to 2022. 45 developing countries and the approach recommended by Canning and Pedroni (2008) has been applied to determine this link. Based on the result of Unit Roots tests, the variables are first-order integrated. The cointegration connection indicates that, despite ongoing external shocks, the time series are linked in a long-term equilibrium. For the whole panel, the causality results show a long-run, unidirectional causal relationship. The long-run causal link from EG to FD is not supported by panel causality data. Examining group averages, there is no long-term causal relationship from FD to EG or EG to FD. The results demonstrate the validity of the supply-leading viewpoint and demonstrate that financial market reforms, financial market liberalization policies, and improved financial intermediation services all have a favorable impact on EG in the economies under discussion.

Anahtar Kelimeler

• developing countries
• economic growth
• financial development

GELİŞMEKTE OLAN ÜLKELERDE EKONOMİK BÜYÜME VE FİNANSAL GELİŞME: CANNİNG VE PEDRONİ'NİN PANEL NEDENSELLİK ANALİZİ İLE AMPİRİK BİR ARAŞTIRMA

Öz

Bu çalışma, 1990-2022 dönemi için finansal gelişme (FD) ile ekonomik büyüme (EG) arasındaki uzun vadeli nedensel bağlantıyı incelemektedir. Bu çalışmada 45 gelişmekte olan ülke için finansal gelişme (FD) ile ekonomik büyüme (EG) arasındaki ilişki Canning ve Pedroni (2008) panel nedensellik testi ile incelenmiştir. Birim Kök testleri sonucuna göre değişkenler birinci dereceden eşbütünleşiktir. Eşbütünleşme bağlantısı, devam eden dış şoklara rağmen zaman serilerinin uzun vadeli bir dengede bağlantılı olduğunu göstermektedir. Panelin tamamı için nedensellik sonuçları uzun vadeli, tek yönlü bir nedensellik göstermektedir. EG'den FD'ye uzun vadeli nedensellik bağlantısı panel nedensellik verileri tarafından desteklenmemektedir. Grup ortalamalarına bakıldığında FD'den EG'ye veya EG'den FD'ye uzun dönemli bir nedensellik ilişkisi bulunmamaktadır. Sonuçlar, arz odaklı bakış açısının geçerliliğini ortaya koymakta ve finansal piyasa reformlarının, finansal piyasa liberalizasyon politikalarının ve iyileştirilmiş finansal aracılık hizmetlerinin tamamının, tartışılan ekonomilerde EG üzerinde olumlu bir etkiye sahip olduğunu göstermektedir.

Anahtar Kelimeler

• gelişmekte olan ülkeler
• ekonomik büyüme
• finansal gelişme

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