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Journals / Iğdır Üniversitesi Sosyal Bilimler Dergisi / 2019 / Cilt: 0 - Sayı: 18

The Relationship between Financial Development and Economic Growth: ARDL Bounds Test Approach and Causality Analysis

Finansal Gelişmişlik ile Ekonomik Büyüme Arasındaki İlişki: ARDL Sınır Testi Yaklaşımı ve Nedensellik Analizi

Mehmet Vahit EREN
Ayşe ERGİN ÜNAL
Pages
527–556
Publication Date
2022-10-18
DOI
—
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AI Summary & Key Takeaways

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

Although the findings acknowledge the existence of the relationship in question, the results of both causality tests reveal the direction of the relationship to be from economic growth to financial development.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to test the existence and the direction of the relationship between financial development and economic growth with various econometric tests.
📊
Key Findings & Data:The model that was created by utilizing quarterly data obtained in Turkey between 1999:Q1–2018:Q1 has been estimated by the ARDL bounds testing approach and the causality relationship has been tested by Toda-Yamamoto and Hatemi-J tests.
💡
Conclusion & Impact:Although the findings acknowledge the existence of the relationship in question, the results of both causality tests reveal the direction of the relationship to be from economic growth to financial development.
🔬Design:Modeling & Simulation
📍Scope:2018 Verileri
⚙️Variables:Finansal gelişmişlik · iktisadi büyüme · ARDL sınır testi

Abstract

This study aims to test the existence and the direction of the relationship between financial development and economic growth with various econometric tests. The model that was created by utilizing quarterly data obtained in Turkey between 1999:Q1–2018:Q1 has been estimated by the ARDL bounds testing approach and the causality relationship has been tested by Toda-Yamamoto and Hatemi-J tests. Although the findings acknowledge the existence of the relationship in question, the results of both causality tests reveal the direction of the relationship to be from economic growth to financial development.

Özet

Bu çalışma, finansal gelişmişlik ile iktisadi büyüme arasındaki ilişkinin varlığını test etmekle beraber söz konusu ilişkinin yönünü farklı ekonometrik testlerle belirlemeye çalışmaktadır. Türkiye’de 1999:Q1-2018:Q1 dönemini kapsayan çeyreklik veriler kullanılarak oluşturulan model ARDL sınır testi yaklaşımı ile tahmin edilmiş olup, nedensellik ilişkisi Toda Yamamoto ve Hatemi-J testleri ile sınanmıştır. Bulgular, söz konusu ilişkinin varlığını kabul etmekle beraber yapılan her iki nedensellik testi sonucu da ilişkinin iktisadi büyümeden finansal gelişmişliğe doğru olduğunu ortaya koymaktadır.

🔖

Cite This Article

EREN, M. V., ÜNAL, A. E. (2022). The Relationship between Financial Development and Economic Growth: ARDL Bounds Test Approach and Causality Analysis. Iğdır Üniversitesi Sosyal Bilimler Dergisi, Cilt: 0 - Sayı: 18, 527–556. https://ajindex.com/articles/538785

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