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Financial Development And Economic Growth: Evidence From Turkey

  • OZTURK, Ilhan


In this paper we review the literature on finance-growth nexus and investigate the causality between financial development and economic growth in Turkey for the period 1975-2004. The empirical investigation is carried out in a vector autoregression (VAR) framework based on the theory of cointegration and error-correction representation of cointegrated variables. The results of the cointegration analysis provide evidence of the existence of a long-run relationship between financial development and economic growth. The empirical findings in the paper show a two way causality (bidirectional) between financial development and economic growth.

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Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 8 (2008)
Issue (Month): 1 ()
Pages: 85-98

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Handle: RePEc:eaa:aeinde:v:8:y:2008:i:1_7
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