An econometric analysis of the relationship between financial development and economic growth: The case of Turkey

One of the main objectives of the economics is to increase the welfare of societies. For this purpose, one of the fields of economics is economic growth. Financial system has important role in achieving economic growth. Mixed empirical findings have been found in the studies investigating causality relationship between financial development and economic growth. The aim of this thesis is to investigate empirically the causality relationship between financial development and economic growth in Turkey. For his purpose, the time-series analysis methods are applied by using the data for the period 1986-2017 in Turkey. Empirical findings demonstrate one-way short-run causality from financial development to economic growth in Turkey.