Structure of the financial system, relationship between financial depth and economics growth, Turkish finance system

One of the main aims of the economics is to improve social welfare. In view of this respect, economic growth constitutes one of the most important field studies of economics. Finance system, which plays a crucial role in the formation of the resources required for the financing of economic growth, is the main subject of this study.One of the main goals of this study is to analyze the possible impacts of financial system and financial depth on economic growth. Another aim is to test causality relation between the financial depth indicators and economic growth by supplying relative information about Turkish finance system.This study consists of four main chapters. In the first, general structure of the financial system is analyzed. In the second, after definition of the financial depth, relative information about its indicators is given. In the third, Turkish finance system and indicators of the financial depth in Turkey is analyzed. And in the last chapter, in order to determine the direction of the relationship between economic growth and financial depth, an econometric application is implemented. In this econometric application made for Denmark and Sweden, which are chosen as samples, as well as Turkey, Integration Analysis and Gagner Causality Analysis are implemented.Causality relation is determined to run, in general, unilateral for Denmark and Sweden. As for Turkish economy, contrary to former expectations, positive relation between financial depth and economic growth couldn?t be determined.Key Words: Finance System, Financial Depth, Economic Growth, Causality, Co-integration.