The Relationship between The Domestic Credit Volume Created by The Banking Sector And Economic Growth in The Turkish Economy: An ARDL Bound Testing Approach

Authors : Oya Korkmaz, Suna Korkmaz

Pages : 622-632

Doi:10.29106/fesa.1255446

View : 118 | Download : 129

Publication Date : 2023-10-09

Article Type : Research Paper

Abstract :Banks are one of the most important elements of the financial system. Banks are organizations that are involved in the development of the money market by ensuring the collection of savings in the economy, transferring surplus funds to economic units that need funds. Banks expand the money supply through the credit channel and ensure that savings are converted into investments in the economy. Increasing investments in the country will contribute to production and employment. The rise in the number of goods and services produced will also lead to development in the rate of economic growth. From this point of view, this study analyzes the short and long-run effects of the aggregate domestic credit volume created by deposit banks, development and investment banks, and participation banks on economic growth in the Turkish economy by adopting the autoregressive distributed lag bounds testing (ARDL) approach for quarterly data covering 2008:01-2022:02 periods. As a result of the analysis, a cointegration relationship has been found between the aggregate domestic credit volume and economic growth. It is concluded that there is no long-term relationship between the aggregate domestic credit volume and economic growth, but they are in a relationship in the short term.
Keywords : Yurt İçi Kredi Hacmi, Ekonomik Büyüme, ARDL sınır Testi