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The Financial Development and Economic Growth Nexus for Turkey

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  • Halicioglu, Ferda

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 uni-directional causation from financial development to economic growth.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3566.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:3566

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

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