Author: Ahmet Sekreter1
1Department of Business And Administration, Faculty of Administrative Sciences and Economics, Ishik University, Erbil, Iraq
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.
Keywords: Financial Development, Economic Growth, VAR Model, Causality
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International Journal of Social Sciences & Educational Studies
ISSN 2520-0968 (Online), ISSN 2409-1294 (Print), March 2017, Vol.3, No.3