IMPACT OF PARTICIPATION AND CONVENTIONAL BANKS ON ECONOMIC GROWTH: CASE OF TURKEY
Open Access
- 29 February 2020
- journal article
- Published by Iktisadi Idari ve Siyasal Arastirmalar Dergisi in İktisadi İdari ve Siyasal Araştırmalar Dergisi
- Vol. 5 (11), 69-85
- https://doi.org/10.25204/iktisad.618930
Abstract
The main purpose of this study is to focus on the concept of economic growth with special reference to the case of Turkey, relies on an approach from the perspective of participation banks and conventional banks to examine the institution of banking and economic growth. Using quarterly data for the period of 2006-2017, the study uses the loan volumes of the conventional and participation banks in order to measure the impact of GDP representing economic growth and of the banks upon the financial system. The series are tested for stationarity via ADF unit root test and then their structural breakpoints are identified by using Zivot-Andrews test. Then Johansen cointegration and Granger causality test are applied. As the result, no trace of cointegration correlation is identified in the long term between the variables subjected to Johansen cointegration test. The causality correlation of the variables is tested via Granger causality test. Although it can be said that there is one-directional causality correlation as reverse for conventional banks, there is no bidirectional causality correlation between the variables for the participation banks in the long term.Keywords
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