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The Relationship Between Bank Loans and Economic Growth In Turkey: 1995-2010

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  • Mahmut Zortuk
  • Mehmet Yunus Çelik

Abstract

In this study, we aim to determine the direction of the relationship between the economic growth and total credits of Turkish Banks. Accordingly, we analyzed this relationship for the period 1995-2010, by using quarterly data analysis. In the analyses as variables, change in the volume of real credits to represent the variable, total credits; and real growth in GDP represents the variable, growth. This study uses Unit Root Test and Gregory-Hansen (GH) Cointegration test as econometric methods. As a result of the analysis and evaluations, it was found that there exists a cointegrating relationship between relevant variables.

Suggested Citation

  • Mahmut Zortuk & Mehmet Yunus Çelik, 2014. "The Relationship Between Bank Loans and Economic Growth In Turkey: 1995-2010," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 2(2), pages 51-60, December.
    • Handle: RePEc:anm:alpnmr:v:2:y:2014:i:2:p:51-60
    DOI: http://dx.doi.org/10.17093/aj.2014.2.2.5000084656
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    More about this item

    Keywords

    Bank Loan; Cointegration; Economic Growth; Gregory-Hansen Cointegration Test; Zivot - Andrews Breakpoint Test;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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