The Nexus between Financial Development and Economic Growth: The Case of Turkey

Authors

  • Ahmet Sekreter Business and Management Department, Faculty of Administrative Sciences and Economics, Tishk International University, Erbil, Kurdistan Region, Iraq

DOI:

https://doi.org/10.23918/ijsses.v3i3p102

Keywords:

Financial Development, Economic Growth, VAR Model, Causality

Abstract

Examining the possible nexus between financial development and economic growth is one of the hot topics in the finance. The relationship between financial development and economic growth is studied for the case of Turkey in this paper. Data interval includes from third quarter of 2002 to first quarter of 2015. Vector Autoregressive Model, Johansen Cointegration and Granger causality tests are used to get evidence for the possible relationship between those variables. Results showed that there is a bidirectional Granger causes in the short run and there is a one way Granger causes from economic growth to financial development in the long-run.

References

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Mercan, M. (2013). Finansal Gelişmenin Ekonomik Büyümeye Etkisi : Ekonometrik Bir Analiz. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 8(1), 93–120.

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Soytaş, U., & Küçükkaya, E. (2011). Economic growth and financial development in Turkey: new evidence. Applied Economics Letters, 18(6), 595–600. https://doi.org/10.1080/13504851003761764

TCMB. (2015). Finansal İstikrar-Türkiye’de Finansal İstikrar Gelişmeleri.

Ünalmış, D. (2002). The Causality between Financial Development And Economic Growth : The Case of Turkey. Development. Working Paper, No. 3, 1-12.

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Published

01.03.2017

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Section

Articles

How to Cite

Sekreter, A. (2017). The Nexus between Financial Development and Economic Growth: The Case of Turkey. International Journal of Social Sciences & Educational Studies, 3(3), 102-109. https://doi.org/10.23918/ijsses.v3i3p102

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