The analysis of credit card usage effects on economy

In addition to widespread credit-card usage at present, it is observed that our country has high level credit-card numbers and usage potential during last a few years. Credit cards have also important effects on economy as well as on persons, commercial firms and banks or other corporations which produce credit cards. The main purpose of this thesis is the credit card system and its effects on economy in Turkey.In order to determine the effects of credit cards on national income, the private consumption expenditures which is one of the sub-item of national income, and the commercial and individual credits for persons who get individual credits because of their unsustainable credit card liabilities are selected. In analysis part of the study, primarily, because of time series features of the variables, the stability tests are performed by using monthly data for the period January 2002 and March 2008. Afterwards, Engle and Granger two ranking model (Cointegration Analyis) and Engle and Yoo three ranking model are performed.The whole analysis results are statisticaly significant and meaningful in economical. One of the result is that an increase in consumption expenditures influence positively the national income and the employment with multiplier effect. Also, it is understood that persons are heading for high level commercial and individual credits in order to overcome their credit cards liabilities. Its evuluated that such increase in credit demands have an rising effect upon market interest rates.Keywords: Credit Card, Cointegration Analysis, Macroeconomic Effects