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Journals / Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2026 / Volume: 13 Issue: 1

The Dynamic Relationship Between Economic Complexity and Financial Development: New Findings on G7 Countries

Ayşegül Yılmaz0009-0001-9137-0327
Gülden Kadooğlu Aydın(HARRAN ÜNİVERSİTESİ)0000-0003-4214-5673
Rüya Kaplan Yıldırım(ADANA ALPARSLAN TÜRKEŞ BİLİM VE TEKNOLOJİ ÜNİVERSİTESİ)0000-0003-0455-568X
Turgay Münyas(OKAN ÜNİVERSİTESİ)0000-0002-8558-2032
Pages
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Publication Date
2026-03-30
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The study finds that financial institutions in G7 countries are structurally strong, the main indicators of development in these countries are productivity, level of development and market structure; the complex production structure increases productivity; the increase in economic complexity is directly related to the quality of financial infrastructure and the ability of society to access the infrastructure; and the development of and access to financial markets is important for reducing structural inequality and increasing financial efficiency.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The aim of this study is to determine the relationship between economic complexity and financial development and financial depth in G7 countries for the period 2000-2021, and thus to reveal whether financial markets fulfil their basic functions such as ‘resource allocation, capital formation, liquidity provision, diffusion of ownership and risk distribution.
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Key Findings & Data:In this framework, the panel Granger causality-based network analysis (GCDN) is employed to reveal the directional and structural interactions between variables in a multidimensional context.
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Conclusion & Impact:The study finds that financial institutions in G7 countries are structurally strong, the main indicators of development in these countries are productivity, level of development and market structure; the complex production structure increases productivity; the increase in economic complexity is directly related to the quality of financial infrastructure and the ability of society to access the infrastructure; and the development of and access to financial markets is important for reducing structural inequality and increasing financial efficiency.
🔬Design:Research Article
📍Scope:2000-2021 Verileri
⚙️Variables:Economic Complexity · Financial Development · Financial Markets

Abstract

The aim of this study is to determine the relationship between economic complexity and financial development and financial depth in G7 countries for the period 2000-2021, and thus to reveal whether financial markets fulfil their basic functions such as ‘resource allocation, capital formation, liquidity provision, diffusion of ownership and risk distribution. In this framework, the panel Granger causality-based network analysis (GCDN) is employed to reveal the directional and structural interactions between variables in a multidimensional context. The study finds that financial institutions in G7 countries are structurally strong, the main indicators of development in these countries are productivity, level of development and market structure; the complex production structure increases productivity; the increase in economic complexity is directly related to the quality of financial infrastructure and the ability of society to access the infrastructure; and the development of and access to financial markets is important for reducing structural inequality and increasing financial efficiency.

🔖

Cite This Article

Yılmaz, A., Aydın, G. K., Yıldırım, R. K., Münyas, T. (2026). The Dynamic Relationship Between Economic Complexity and Financial Development: New Findings on G7 Countries. Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Volume: 13 Issue: 1. https://doi.org/10.30798/makuiibf.1710719

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