Analysis of relationship between leasing sector and economic growth: the case of Turkey

Leasing sector is one of the important and growing sector in Turkey's economy, it is an alternative way of financing for investors. However, leasing in Turkey, compared with the world, seems to be at a very low level of among the private sector's financial resources. In this context, in our study, it is aimed to examine current status of the leasing sector with high development potential in Turkey and relationship between the sector and economic growth, which is one of the basic macroeconomic variables. In this regard, in the first part of the study, general information about the concept and operation of leasing is given; in the second part, the development of the leasing sector and the current situation in the world and Turkey is discussed in detail. In the third part of the study, firstly, the methodology of the analysis used in the implementation part, information about Vector Autoregressive Regression (VAR) is given. Then, in order to determine the variables to be used in the VAR model, binary Granger causality analyzes is made between the variables which selected to represent the leasing sector and economic growth and the variables to be included in the analysis is determined according to the causal relations. Afterwards the VAR model is modelled on 1 lag and based on this model, variance decomposition is performed. Following variance decomposition, impulse response functions have been created and the results are analyzed. In terms of implementation, as a result of this study which is the first study feature in the literature, it is discovered that, bi-directional effect between leasing operations of leasing sector and economic growth and also bi-directional effect between return on equity and economic growth. Besides, it is found that unidirectional effect from return on asset to economic growth. Based on these results, it can be foreseen that this financing method can be an alternative source of finance for enterprises and may contribute to the growth of the country's economy.