Financial development and economic growth: evidence from turkey

• OZTURK, Ilhan ^[1]
  1. [1] Çağ University

     Çağ University

     Turquía

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 8, Nº. 1, 2008, págs. 85-97
• Idioma: inglés
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• Resumen

  • In this paper we review the literature on finance-growth nexus and investigate the causality between financial development and economic growth in Turkey for the period 1975-2005. The empirical investigation is carried out in a vector autoregression (VAR) framework based on the theory of cointegration and error-correction representation of cointegrated variables. The results of the cointegration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a one-way causality running from economic growth to financial development in Turkey.