Does Financial Development Enhance Economic Growth? The Case of Turkic Countries Finansal Gelişme Ekonomik Büyümeyi Artırır mı? Türk Cumhuriyetleri Örneği
Bilig, cilt.2023, sa.106, ss.55-76, 2023 (SSCI, Scopus, TRDizin)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 2023 Sayı: 106
- Basım Tarihi: 2023
- Doi Numarası: 10.12995/bilig.10603
- Dergi Adı: Bilig
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Index Islamicus, Linguistic Bibliography, Linguistics & Language Behavior Abstracts, MLA - Modern Language Association Database, Political Science Complete, Sociological abstracts, Worldwide Political Science Abstracts, TR DİZİN (ULAKBİM)
- Sayfa Sayıları: ss.55-76
- Anahtar Kelimeler: economic growth, Financial development, financial institu-tions, financial markets, Turkic countries
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- Ankara Hacı Bayram Veli Üniversitesi Adresli: Hayır
Özet
In this study, we investigate whether financial development enhances economic growth in Turkic countries, namely, Azerbaijan, Kazakhstan, Kyrgyzstan, and Türkiye from 1995 to 2017. The financial development index is obtained from the International Monetary Fund to proxy for the level of financial develop-ment. The index shows the level of development of financial institutions and financial markets in terms of depth, access, and efficiency. The annual percent-age growth rate of GDP per capita based on constant local currency is taken as an indicator of economic growth. The main result of the analysis shows that there is a positive relationship between financial development and economic growth. The result is robust using random effect regression, adding inflation, and including Banking Z Score. However, the main impact can be seen in the financial institution instead of the financial market proxy. The results support the supply-leading hypothesis for the economies of four Turkic countries.