Financial Development In Turkey Research Articles

The Effects of Banking Sector Performance on Financial Development in Turkey

Finansal gelişmişlik düzeyinin arttırılması, istikrarlı bir finansal sistemin varlığı ile mümkündür. Bu süreçte finansal sistem kurumlarından en önemlilerinden birisi olan bankaların işleyişi ise oldukça önemlidir. Bankalar yalnızca finansal aracılık, likidite sağlama veya asimetrik bilgiyi azaltma gibi temel mikroekonomik fonksiyonlara değil aynı zamanda, para politikalarının etkililiğini arttırmak ve finansal piyasaların gelişimini desteklemek gibi makroekonomik işlevlere de sahiptir. Özellikle hem bankacılık sektörünün hem de finansal gelişmişliğin ekonomik büyüme açısından önemi düşünüldüğünde, bankacılık performansının finansal gelişmişlik üzerine olan muhtemel etkilerinin araştırılmasının gereği daha iyi anlaşılacaktır. Bu bağlamda, Türkiye’de bankacılık performansını temsil eden seçili rasyoların finansal gelişmişlik üzerine olan etkililerinin incelenmesi düşünülmüştür. Çalışmada 2002-2020 dönemi için Uluslararası Para Fonu (IMF) ve Türkiye Bankalar Birliği (TBB) verilerinden yararlanılmış ve Arellano ve Bond Genelleştirilmiş Momentler (GMM) yöntemi kullanılmıştır. Araştırma bulgularına göre, Sermaye Yeterliliği Oranı (SYR) ve Toplam Kredilerin Mevduata Oranı (AKR) değişkenlerinin Finansal Gelişmişlik Endeksi (FDI) üzerinde pozitif yönlü, Alınan Kredilerin Toplam Kredilere Oranı (BYR) ve Ortalama Aktif Karlılık (AKO) değişkenlerinin ise negatif yönlü etkileri tespit edilmiştir. Elde edilen bu bulgular, finansal gelişmişlik ile aynı yönde hareket eden ve bankaların optimal risk düzeylerinde özkaynaklarını verimli şekilde kullanmasına yardımcı olan sermaye yeterliliği ile ilgili kararların, önemine dikkat çekmektedir. Dahası, bir banka için yapısal likidite ve dolayısıyla kredi akışlarının doğru ayarlanmasına yardımcı olabilecek toplam kredilerin toplam mevduatlara olan oranın da finansal gelişmişliği aynı şekilde etkileyebilme potansiyelinin olduğu anlaşılmaktadır. Öte yandan, alınan ve toplam krediler arasındaki dengelerin finansal gelişme olan zıt ilişkisi, bankacılık sektöründe risk faktörlerine ilişkin ayarlama ve tercihlerin bir gerekliliği olarak ele alınmalıdır. Son olarak ise, aktif karlılığın finansal gelişmişlikle olan ve beklenmedik gibi görünen zıt yönlü ilişkisinin, bankaların kredi kullandırabilme kabiliyetlerinin bir sonucu olabileceği vurgulanmalıdır.

FİNANSAL GELİŞMENİN YENİ YÖNLERİNİ ARAYIŞTA TÜRKİYE ÖRNEĞİ: EKONOMIK BÜYÜME İLİŞKİSİ

This study was conducted to determine the relationship between economic growth and financial development in Turkey for the period 1998:Q1 to 2021:Q1. For this purpose, following traditional practices, economic growth is monitored using the real gross domestic products’ changes. Financial development(FD) of Turkey’s monitored by using two aspects of financial development that are found equally important. These aspects are ‘financial institutions development’(FID) and ‘financial markets development’(FMD). Within the scope of the study, which is designed as a time series study, unit root and stationarity process tests were performed. Finding the series stationary, vector autoregressive model (VAR) is proposed. After lag length selection with the stable model, impulse response(IR) analyses were performed. After the IR analyses variance decomposition was performed using the Cholesky method. Both the economic development and financial development are considered to be important for Turkey and they have a relationship. The variables used in the study were found to be representative but not enough to conduct political or financial decisions. With the digital transformation, new variables should also be searched to represent the financial development and economic growth.

Uluslararası İşçi Dövizlerinin Finansal Gelişme Üzerindeki Etkisi: 1974-2019 Dönemi Türkiye Deneyimi

In this study, workers’ remittances on financial development in Turkey are analysed using the Autoregressive Distributed Lag Bound (ARDL) method from 1974 to 2019. In the analysis, the dependent variable, which is the domestic credit to the private sector by banks (percent of GDP), is used as an indicator for financial development. In addition to international workers’ remittances, other independent variables include GDP per capita, interest rate, and inflation. International remittances are found to affect financial development positively; however, the effect is slight. In addition, growth affects financial development positively, inflation negatively, and the impact of interest is statistically insignificant.

Environmental Kuznets Curve and financial development in Turkey: evidence from augmented ARDL approach.

This study examines the effect of economic growth and financial development on CO2 emissions in Turkey in the period of 1965-2018 within the framework of the Environmental Kuznets Curve (EKC) hypothesis. In this context, augment ARDL cointegration and Fourier Toda-Yamamoto causality tests were used. As a result of the research, it was found that economic growth, financial development, and CO2 emissions are cointegrated. That is, they act together in the long run. Thus, according to the long- and short-term findings, it has been determined that the EKC hypothesis is valid in Turkey in the relevant period. However, financial development does not have a statistically significant effect on CO2 emissions. Furthermore, Fourier Toda-Yamamoto causality test findings imply that there is no causality between the variables. In this direction, policy-makers should not neglect environmental regulations and incentives by prioritizing economic growth in choosing between economic growth and environmental degradation. Otherwise, in the long run, the cost of environmental degradation will exceed the benefits of economic growth.

Effects of the financial crisis on the turkish banking sector : a research on turkısh bankıng crısıs in 2000-2001

The objective of this paper is to give a theoretical structure that incorporates the inward development and elements of money related markets and organizations hypothesis keeping in mind the end goal to look at how the financial market and the managing an account part create pointers that influence financial development in Turkey. Incredibly, the choice of capital putting resources into request to obstruction against different sorts of dangers is a noteworthy issue for the banks. At this stage, an essential strategy to decide stretch testing is imperative whether the capital proportions of the banks are satisfactory or not.
 The financial crisis of 2000-2001 was turned out to be devastating for Turkey after the plenitude of cash peg around the same time. The emergency being referred to originated from the deficient usage of controls, the insufficient profundity of the capital markets, the absence of evaluation of hazard, extreme loaning to consolidated establishments by national banks, confined financing costs, observed outside trade operations, constrained remote resource holding, the absence of rivalry, obstructions to remote section and high liquidity, endless swelling and a shortfall to be determined of installments.
 Bank performance is one of the vital issues for the healthy functioning of the Turkish economy. I use surrogate scenarios to test flexibility of the banking sector. In this research I check how much banking sector is flexible to external shocks under the planned scenarios.
 In this paper you can find so many objectives mean how you can examine your performance currently or in the past. The different panel data are collected that shows different perspective and views about the functionalism of the banking sector before and after the financial and economic crisis.

Revisiting the impact of financial development on economic growth: the case of Turkey

This study re-examines the impact of financial development on economic growth using time series data covering the period 2006 to 2015 in Turkey. The existing literature on the relationship between economic growth and financial development has focused on various proxies for financial development. When utilising different proxies for financial development, the results of the models varied. The aim of this paper is to use one index, which represents financial development, without making any random decisions on the selection of financial development proxies. Our results confirm an unambiguously positive relationship between economic growth and financial development in Turkey. Using the bounds test for cointegration, this study finds that the effect of the Arab Spring is captured in the short-run dynamic model and it has a temporary impact on the instability of coefficients in terms of the link between economic growth and financial development in Turkey.

Revisiting the Impact of Financial Development on Economic Growth: The Case of Turkey

This study re-examines the impact of financial development on economic growth using time series data covering the period 2006 to 2015 in Turkey. The existing literature on the relationship between economic growth and financial development has focused on various proxies for financial development. When utilising different proxies for financial development, the results of the models varied. The aim of this paper is to use one index, which represents financial development, without making any random decisions on the selection of financial development proxies. Our results confirm an unambiguously positive relationship between economic growth and financial development in Turkey. Using the bounds test for cointegration, this study finds that the effect of the Arab Spring is captured in the short-run dynamic model and it has a temporary impact on the instability of coefficients in terms of the link between economic growth and financial development in Turkey.

An Empirical Evidence on the Causality between Sectoral Economic Growth and Financial Development in Turkey

Bu calismada 2003C1-2018C3 doneminde finansal kalkinma gostergeleri ve ticari aciklik ile ekonomik buyume arasindaki nedensellik iliskisi, hem toplam ekonomik buyume hem de imalat sanayi ve insaat sektorlerinin ekonomik buyumesi acisindan arastirilmistir. Uc ayri modelle yapilan Johansen esbutunlesme analizi sonucunda, tum modeller icin gecerli olmak uzere, degiskenler arasinda uzun donem iliski oldugu belirlenmistir. Granger nedensellik testi tahmin sonuclarina gore, finansal gelisme ile ekonomik buyume arasindaki iliskinin tespitinde, finansal gelisme gostergesinin belirleyici oldugu sonucuna ulasilmistir. Buna gore, miktar olcutlu finasal kalkinma gostergesi olan ozel sektor kredileri ile toplam ekonomik buyume ve imalat sanayi ekonomik buyumesi arasinda karsilikli bir nedensellik iliskisi belirlenmistir. Insaat sektorunde ise ekonomik buyume finansal kalkinmaya neden oldugu icin talep takipli gorusun baskin oldugu tespit edilmistir.

Do industrialization, democracy, and financial openness promote financial development? Evidence from Turkey

ABSTRACTThis study aims to unweil the determinants of financial development, particularly the impact of industrialization, democracy, and financial openness on financial development in Turkey over the 1975–2015 period, using a bounds testing approach. It is found that (i) financial development and its main determinants are co-integrated; (ii) democracy is positively associated with financial development, whereas financial openness is associated with lower financial development; and (iii) industrialization is not a significant determinant of financial development in Turkey. Based on the obtained results, some recommendations are also provided.

Interactions between tourism and financial sector development: evidence from Turkey

ABSTRACTThis article aims to examine the interactions between tourism growth and financial development in Turkey, which is a top tourist destination and has developed a well-functioning financial system over the last decade. The results confirm a long-term association between tourism development and financial development; foreign direct investments and foreign trade also impact this interaction. According to the results, tourism expansion in Turkey is mainly influenced by financial markets. The results also reveal that in Turkey, changes in tourism volume precede changes in financial volume. Thus, the major finding of this study is that tourism development and financial development in Turkey have a long-term and reinforcing interaction.

Impact of Financial and Trade Openness on Financial Development in Emerging Market Economies: The Case of Turkey

The study aims to examine whether the intensity of financial openness, trade openness and foreign direct investment promoted financial development in Turkey for the period 1974–2014. Three financial development indicators are used constructing the data from the World Development Indicators. Autoregressive Distributed Lag Model (ARDL) and the bounds tests are employed to show the long run relationship among variables. The empirical results suggest that financial openness and foreign direct investment have a predictive power in fostering financial development. More, trade openness does not have predictive power on financial development. It can be concluded that financial openness and foreign direct investment can be used to foster financial development as well as economic growth in the case of Turkey. These results has very important inferences on the Turkey’s Custom Union agreement with the European Union.

A Multivariate Causality Analysis of Economic Growth and Electricity Consumption in Turkey

This study uses time series data to examine the long-run and short-run effects of electricity consumption, real GDP per capita, exports and financial development in Turkey between 1970-2011. The study adopted structural break unit root test, ARDL bounds tests methods to test cointegration to achieve robust results. Inter-variable causal relationships were determined using the Toda and Yamamoto (1995) framework. The findings were that electricity consumption, financial development and exports are cointegrated in the long run. Following this development, financial development was found to create a significant increase in both economic growth and electricity consumption in Turkey. The findings were that electricity consumption positively impacts on the economic growth in addition to the fact that bidirectional causality between economic growth and electricity consumption were established. These results also support that, feedback hypothesis is confirmed in Turkey.

Openness and financial development: time series evidence for Turkey

Our study investigates whether trade openness and financial openness have significant impact on financial development using time series data on Turkey for the 1989:1–2007:2 periods. We also investigate Rajan and Zingales (2003) hypothesis that both trade and capital accounts should be simultaneously liberalised in order to achieve financial development. We use four different financial development indicators, commonly employed in the previous literature. The bounds testing and autoregressive distributed lag approaches to cointegration, developed by Pesaran et al. (2001) are used in the estimation process. The empirical findings indicate that all financial development measures show a long-run levels relationship with financial openness, trade openness and real GDP. Consequently, our estimates imply that both financial and trade openness have led to financial development in Turkey. The findings also support the hypothesis of Rajan and Zingales (2003). Marginal effects of financial and trade openness on the financial development indicators imply that Turkey may benefit from trade openness and/or liberalised capital accounts.

Economic growth and financial development in Turkey: new evidence

We examine the link between financial development and economic growth in Turkey for the period 1991 to 2005 using quarterly data. We use relatively new time series techniques that are less prone to bias to examine this relationship. We also construct a comprehensive financial development index using principal component analysis. When we control for the possible effects of inflation and monetary and fiscal policies on monetary aggregates and the economic growth rate, we fail to find any long-run causality in either direction. The result is also confirmed by generalized impulse response analysis.