Finansal Derinliğin Kırılgan Beşli Ekonomileri Üzerindeki Etkisi

Abstract

Improvement in the financial system is important to increase economic growth performance. Because the positive change in the financial system positively affects the investment and consumption decisions ensuring growth. In the meantime, the financial depth that is one of the indicators of financial development measurement is a remarkable index revealing the degree of benefiting from the financial system in terms of developing countries. The entry of both domestic savings and global capital flows into the financial system is crucial to pro-vide the financial depth. This study utilized panel data analysis methods to test the effect of financial depth on economic growth in the light of data of Turkish, South African, Brazilian, Indian, and Indonesian economies that are called fragile five and also well-known with their financial systems’ dependency to external financing for the period between 1980 and 2018. Test results show that it is possible to talk about two-way causality for the country group in the short and long term while there is only a one-way causality from financial depth to Brazilian, Indian, and South African economies.