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Banking Competition, Financial Liberalization and Economic Growth: Evidence from Turkish Economy during the 1990-2014 Period

Author

Listed:
  • Tuncay Celik

    (School of Applied Sciences, Erciyes University, Kayseri, Turkey,)

  • Levent Citak

    (Faculty of Business and Administration, Erciyes University, Kayseri, Turkey.)

Abstract

After 1950s, economics literature embraced a gradually increasing pattern of studies on economic growth. Empirical studies on the relations among competition in the banking sector, which provides financing to real investments, financial liberalization and economic growth have been increasing since late 1980s. These studies, which have their roots in McKinnon and Shaw approach, investigate whether financial liberalization leads to efficiency rise in the financial sector resulting in economic growth through low cost loans. The objective of this study is to test the relationship among competition in the Turkish banking sector, financial liberalization and economic growth over 1990-2014 period using annual time-series data. The findings suggest that over the study period, competition is positively and liberalization is negatively related to economic growth in Turkey.

Suggested Citation

  • Tuncay Celik & Levent Citak, 2016. "Banking Competition, Financial Liberalization and Economic Growth: Evidence from Turkish Economy during the 1990-2014 Period," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1750-1755.
    • Handle: RePEc:eco:journ1:2016-04-62
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    References listed on IDEAS

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    Cited by:

    1. Fiaz Ahmad Sulehri & Usman Ahmed & Wajid Alim, 2021. "Black Economy, Financial Inclusion, Financial Liberalization Nexus: A Panel Analysis Of Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 65-77, September.
    2. Mustafa Ildırar & İbrahim Başaran, 2021. "The Effect of the Global Financial Crisis on the Market Structure: The Case of the Turkish Banking Sector," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 6(2), pages 289-303.
    3. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116101, University Library of Munich, Germany.

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    More about this item

    Keywords

    Banking Competition; H Statistics; Liberalization; Economic Growth; Turkish Economy;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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