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The Financial Development and Economic Growth Nexus for Turkey Author info | Abstract | Publisher info | Download info | Related research | Statistics Ferda Halicioglu
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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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Paper provided by Economics and Econometrics Research Institute (EERI) 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 2007Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2007_06Contact details of provider: Postal: Avenue de Beaulieu, 1160 Brussels Phone: +322 299 3523 Fax: +322 299 3523 Email: Web page: http://www.eeri.eu/index.htm More information through EDIRC
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Keywords: Growth ; financial intermediation ; causality ; cointegration ; Turkey ; Other versions of this item:
Find related papers by JEL classification: C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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Oxford Bulletin of Economics and Statistics ,
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Journal of Policy Modeling ,
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Roger B. Atindéhou & Jean Pierre Gueyie & Edoh Kossi Amenounve, 2005.
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Applied Financial Economics ,
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Oguz Esen, 2000.
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International Review of Applied Economics ,
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Johansen, Soren & Juselius, Katarina, 1990.
"Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money ,"
Oxford Bulletin of Economics and Statistics ,
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Shan, Jordan Z & Morris, Alan G & Sun, Fiona, 2001.
"Financial Development and Economic Growth: An Egg-and-Chicken Problem? ,"
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[Downloadable!] (restricted)
Liang, Qi & Teng, Jian-Zhou, 2006.
"Financial development and economic growth: Evidence from China ,"
China Economic Review ,
Elsevier, vol. 17(4), pages 395-411.
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Mah, Jai S., 2000.
"An empirical examination of the disaggregated import demand of Korea--the case of information technology products ,"
Journal of Asian Economics ,
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James B. Ang & Warwick J. McKibbin, 2005.
"Financial Liberalization, Financial Sector Development And Growth: Evidence From Malaysia ,"
CAMA Working Papers
2005-05, Australian National University, Centre for Applied Macroeconomic Analysis.
[Downloadable!]
Other versions: Jahangir Aziz & Christoph Duenwald, 2002.
"Growth-Financial Intermediation Nexus in China ,"
IMF Working Papers
02/194, International Monetary Fund.
[Downloadable!]
Demetriades, Panicos O. & Hussein, Khaled A., 1996.
"Does financial development cause economic growth? Time-series evidence from 16 countries ,"
Journal of Development Economics ,
Elsevier, vol. 51(2), pages 387-411, December.
[Downloadable!] (restricted)
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