Causal Relationships between Financial Development, Trade Openness and Economic Growth: The Case of Turkey

By F. Yucel. 2009

134 citations recorded by the source corpus.

Problem statement: The main objective of this study was to examine the causality relations between financial development, trade openness and economic growth (GDP) for the Turkish economy. Approach: In time series context, recently developed econometric techniques were used: namely the Augmented Dickey-Fuller (ADF) for unit root, Johansen and Juselius (JJ) for cointegration and Granger causality test for causal relationships. Results: The findings of the study showed that while trade openness has a positive effect, financial development has a negative effect on growth. Conclusion: Moreover, the Granger causality test results revealed the presence of bicausal relationship between financial development, trade openness and growth indicating that economic policies aimed at financial development and trade openness have a statistically significant impact on economic growth.

Subfields: Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/2ed4f3c1d42e0e7feb0ea7757fe01ba985001e09

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Information Systems

Citations in the corpus

The Impact of Financial Development and Trade on the Economic Growth of Bolivia (2012, background): “Yucel (2009), analyzing Turkey for the 1989-2007 period, finds bidirectional causality between financial development, trade openness and growth, indicating that economic policies aimed at financial development and trade openness have a statistically significant impact on economic growth.”
Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia (2011, background): “The most common proxy is domestic credit to private sector as share of GDP, e.g. (see Yucel 2009 for further details). where ENC is logarithmic total energy consumption per capita, FD is logarithmic domestic credit to private sector as share of GDP, GDPC is logarithmic real GDP per capita, IND is…”
Causal nexus between economic growth, banking sector development, stock market development, and other macroeconomic variables: The case of ASEAN countries (2014, unknown): “…Bangake & Eggoh, 2011; Beck, Levine, & Loayza, 2000; Chow & Fung, 2011; Fase & Abma, 2003; Herwartz & Walle, 2014; Jung, 1986; King & Levine, 1993a,b; Levine, 2003; Levine, Loayza, & Beck, 2000; Mukhopadhyay, Pradhan, & Feridun, 2011; Wachtel, 2003; Rousseau & Yilmazkuday, 2009; Yucel, 2009).”
Financial Development, Environmental Quality, Trade and Economic Growth: What Causes What in MENA Countries (2015, background): “Yucel (2009) examined the causality relations between financial development, trade openness and economic growth in the Turkia.”