Finance – Growth Nexus: Evidence from Turkey

Acaravci, Ali; Ozturk, Ilhan; Acaravci, Songul Kakilli

doi:10.2139/ssrn.1401590

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Finance – Growth Nexus: Evidence from Turkey

11 Pages Posted: 9 May 2009

See all articles by Ali Acaravci

Songul Kakilli Acaravci

Mustafa Kemal University; Mustafa Kemal University

Date Written: 2007

Abstract

This paper examines the causal relationship between financial development and economic growth in Turkey for the period 1986:1-2006:4 using dynamic time series models. The results of the cointegration analysis provide evidence of no long-run relationship between financial development and economic growth. Therefore, the empirical investigation is carried out in a vector autoregression (VAR) framework to analyze the short run effect of the financial intermediary development on economic growth. The results show a one-way causal relationship running from the financial development to the economic growth in Turkey.

Keywords: Financial development, Growth, Turkey, Causality.

JEL Classification: O11, O16, O52.

Suggested Citation: Suggested Citation

Acaravci, Ali and Ozturk, Ilhan and Acaravci, Songul Kakilli and Acaravci, Songul Kakilli, Finance – Growth Nexus: Evidence from Turkey (2007). Available at SSRN: https://ssrn.com/abstract=1401590 or http://dx.doi.org/10.2139/ssrn.1401590