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The Financial Development and Economic Growth Nexus for Turkey

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  • Ferda Halicioglu

Abstract

This study investigates the validity of the demand-pulling and the supply-leading hypotheses using annual data from 1968 to 2005. The bounds testing approach to cointegration is conducted to establish the existence of a long-run relationship between financial development and economic growth. An augmented form of Granger causality analysis is implemented to identify the direction of causality among the variables both in the short-run and the long-run. The empirical findings suggest unidirectional causation from financial development to economic growth.

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File URL: http://www.eeri.eu/documents/wp/EERI_RP_2007_06.pdf
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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2007_06.

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Length: 18 pages
Date of creation: 28 Oct 2007
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2007_06

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Keywords: Growth; financial intermediation; causality; cointegration; Turkey;

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