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Abstract
Turkish economy has a growing trend after the 2000-2001 economic crises, although ups and downs were experienced in some periods. Some of the important components of Turkish economy are the construction industry and the related housing industry. The construction industry in Turkey has a multiplier effect in the economy since it uses domestic inputs and creates jobs for the labor. Also, the construction sector actors operate overseas and enable inflow of foreign currency to Turkey, thus fostering economic growth. In the recent years, foreign funds and overseas firms have an increasing interest in Turkish construction industry. The Turkish housing industry as one of the leading components of construction industry has also experienced eye-catching developments in the recent years. Definitely, the Turkish housing industry is now much more competitive compared to former years. The global economic crisis of 2008 originated from the housing industry and had devastating effects all over the world. However, the 2008 global economic crisis had relatively lighter effects in Turkey. Parallel to the improvements in construction and housing industries, several financial alternatives exist today. Banks have diversified their credit products considering the needs of consumers. Moreover, the mortgage law going in effect and the mortgage practices becoming popular have contributed to the progress of housing industry. This study analyzed the effect of housing loans and their diversification on economic growth. The research concentrated on the 2010-2015 period, where the impact of 2008 global crisis has diminished.
Highlights
Wherever you are in the world, housing is one of the basic needs of human being
The results show that, financial development significantly causes economic growth in the short-run, and in the long-run, there is a bidirectional relationship between financial development and economic growth
This study empirically investigates the relationship between construction flow and economic growth for Saudi Arabia during the 1970–2011 period
Summary
Wherever you are in the world, housing is one of the basic needs of human being. In addition to being a basic need for human being, it functions as an important investment tool for people. Housing sector is essential and crucial for the whole economy. Housing construction sector together with other type of building constructions play a crucial role in generating income. As being a part of financial markets, mortgage markets and mortgage loans are important tools of monetary policy. The relation between economic growth and housing loans will be analyzed in Turkey for the 2010-2015 period. The history and improvements in Turkish economy will be summarized and improvements for housing loan market will be followed. General outlook of Turkish economy and economic growth data are analyzed.
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