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Interactions between Economic Growth, FDI and Islamic Banking Development in Turkey

Author

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  • Salih Kalayci
  • Behic Efe Tekin

Abstract

In this research paper, the quarter data has been collected from Turkish Central Bank in order to determine the relationship between economic growth, FDI and participation banks of Turkey over the periods of 2002 - 2014. Several econometrical models have been implemented to reveal this relation among variables. In this context, it has been found that there is a long-term linkage between economic growth, FDI and breakdown of participation funds in Islamic banking by implementing Johansen co-integration test. On the other hand, according to Granger causality test (GCT), when the lag number is 3, there is a bidirectional relationship between GDP and participation funds in Islamic banking. According to results of both Johansen co-integration and Granger causality test, the contribution of Islamic banking to*the economic growth of Turkey is so vital. The linear regression analysis has to be used to reply the research questions. The results indicated that there is the considerable impact of GDP on Islamic bank deposits in Turkey which is founded 0.0006.

Suggested Citation

  • Salih Kalayci & Behic Efe Tekin, 2016. "Interactions between Economic Growth, FDI and Islamic Banking Development in Turkey," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(8), pages 230-230, July.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:8:p:230
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    References listed on IDEAS

    as
    1. Raymond W. Goldsmith, 1955. "Financial Structure and Economic Growth in Advanced Countries: An Experiment in Comparative Financial Morphology," NBER Chapters, in: Capital Formation and Economic Growth, pages 112-167, National Bureau of Economic Research, Inc.
    2. Asyraf Wajdi Dusuki & Abdulazeem Abozaid, 2007. "A Critical Appraisal On The Challenges Of Realizing Maqasid Al-Shariaah In Islamic Banking And Finance," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 15(2), pages 999-1000, December.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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