Relationship between financial development and economic growth: Turkey case

This study, emprically tested the role of financial development in economic growth processes for 1970?2006 period, by using variety time series techniques in Turkey. The conclusions of cointegration test show that there is no long-run relation between financial development and economic growth. However, conclusion of Granger causality test is obtained as supportive evidence to hypothesis of both short-run supply-leading and demand-following in finance-growth relation. The results of causality test exhibit clearly that causal relation between financial development and economic growth may change according to financial development indicator.