Author
GÖKSU, Serkan
Publication Place
University of Afyon Kocatepe -
University of Afyon Kocatepe
Subject
Cointegration, Economic development
Type
kitap
Language
ara,eng
Digital
Yes
Manuscript
No
Library
Leitir Library
Library Asset ID
ISSN: 2757-8399, EISSN: 2757-8399, DOI: 10.52637/kiid.1352885
Record ID
cdi_doaj_primary_oai_doaj_org_article_be753922b1b145819ee7ff6337a8d10d
Library Location
DOAJ Directory of Open Access Journals
Notes
The financial instruments and banking operations of participation banks differ from conventional banking practices. Therefore, the effects of participation banks on economic activities need to be examined and analyzed separately. Although the share of financing offered by participation banks in the financial sector has increased in recent years, the studies on the subject have gradually increased, but the participation banking sector contains many areas open to development. In this context, when the studies on participation banking are examined, it has been determined that the studies mainly address the issue either on the basis of the total financing or by focusing on the financing provided to the private sector. Based on this gap in the literature, the study aimed to make an efficiency analysis on a sectoral basis by separating the total financial resources offered by participation banks into private sector, public sector and financial institutions. For this purpose, economic growth was determined as the dependent variable and the impact of each sector on growth was taken into account. Variables other than economic growth were included in the analyzes in logarithmic form in order to both converge the outliers and interpret the analysis results as a percentage. The data obtained from the Central Bank of the Republic of Türkiye relates to the sample of Türkiye and covers 68 quarters for the period 2006-2022. Since the data is quarterly, it is adjusted for seasonal effects. After standardizing the data, descriptive statistics and correlation matrix were first presented within the scope of the analysis. According to the correlation matrix results, it was determined that there was a positive correlation between economic growth and the financing provided to the private sector, and a negative correlation between the financing provided to the public and financial institutions. Another important finding obtained from the correlation matrix is that there is no multicollinearity problem. Then, unit root tests taking into account both traditional and structural breaks were applied to both eliminate the spurious regression problem and to decide on the method to be used. As a common result of the applied unit root tests, it was decided that choosing the A-ARDL estimation method would give more effective results. According to the findings obtained from the estimation method, there is a cointegration relationship at different levels of significance between economic growth and the financing provided by participation banks to the private sector, public sector and financial institutions. This result means that the variables in the model move together in the long run and their linear combinations converge to the equilibrium point. In terms of long-term coefficients, the financing provided by participation banks to the private sector has positively affected economic growth. This result can be interpreted as participation banks being selective in the financing processes they provide to households and companies and placing the participation funds they collect in areas that will have a positive impact on economic growth. On the other hand, the financing provided to the public sector negatively affected economic growth. This result, at first glance, shows that the financing provided to the public sector by participation banks negatively affects economic growth. However, the effect of financing provided to the public sector on growth may not be exactly like this. Because the resources provided by participation banks to local governments and non-financial public initiatives are generally used to finance public services that are not profitable by the private sector, such as public infrastructure investments, it is expected that the positive effects of these resources will take longer to emerge. Similarly, the financing provided to financial institutions did not have a positive impact on economic growth. The most effective factor on economic growth in the short term is the lagged values of economic growth itself. In addition, the negative and statistically significant coefficients of the dummy variables representing the important structural breaks experienced by Turkey provide empirical evidence for the negative effects of the 2008 global economic crisis and the pandemic that occurred in 2019 on economic growth. As a result, it is clear that the most effective factor on economic growth in terms of participation financing is the financing offered to the private sector by participation banks. Therefore, in order to increase the effectiveness of economic activities, it may be recommended to encourage the financing provided by participation banks to the private sector and to operate public audit mechanisms more actively in order to increase the effectiveness of the financing provided to the public sector. Participation banks' financial instruments and banking operations differ from conventional banking operations. Therefore, the effects of participation banks on economic activities should be examined and analyzed separately. With the increase in the share of financing offered by participatory banks in the finance sector in recent years, studies on the subject have increased gradually. However, it still includes many areas open to development. In this context, studies on participation financing mainly examine the issue based on the total financing or the financing provided to the private sector. Based on this gap in the literature, it aims to make an efficiency analysis on a sectoral basis by separating the total financing resources offered by participation banks into private sector, public sector, and financial institutions. For this purpose, the variable of economic growth indicator of economic efficiency in the study is the dependent variable. Variables other than economic growth are in logarithmic form to converge outliers and interpret the analysis results as percentages. Variables other than economic growth were included in the logarithmic analysis to converge the outliers and interpret the analysis results as percentages. The study covers the sample of Türkiye and 63 quarters for 2006-2022. The data source is the Central Bank of the Republic of Türkiye. Since the data are quarterly, data are seasonally adjusted. After standardizing the data, the study first presents descriptive statistics and a correlation matrix within the scope of analysis. According to the results of the correlation matrix, there is a positive relationship between economic growth and financing provided to the private sector and a negative relationship between financing provided to the public and financial institutions. Another important finding from the correlation matrix is no multicollinearity problem. Then, the study applies unit root tests that consider both traditional and structural breaks to rule out the spurious regression problem and decide on the method. Preferring the A-ARDL estimation method, the common result of the applied unit root tests gives more effective results. According to the estimation method findings, the economic growth variable and the financing variables provided by participation banks to the private sector, public sector, and financial institutions are co-integrated at different levels of significance. This result means that the variables in the model move together in the long run, and their linear combinations converge to the equilibrium point. Regarding long-term coefficients, financing provided to the private sector by participation banks positively affects economic growth. This result can be interpreted as the participation banks are selective in the financing processes they provide to households and companies and place the participation funds they collect in areas that will positively affect economic growth. Although this result has a negative impact on the economic growth of the financing provided to the public sector by participation banks, this may not be precisely the case. Because the resources provided by participation banks to local governments and non-financial public enterprises are generally for financing public services that are not profitable by the private sector, such as public infrastructure investments, the positive effects of these resources take much longer to emerge. Similarly, the financing provided to financial institutions does not positively affect economic growth. In the short run, the most influential factor on economic growth is the lagged values of economic growth. In addition, the negative and statistically significant coefficients of the dummy variables representing the significant structural breaks experienced by Turkey provide empirical evidence for the negative effects of the 2008 global economic crisis and the 2019 pandemic on economic growth. As a result, the most influential factor on economic growth in terms of participation financing is private sector financing. Therefore, to increase the efficiency in economic activities, public audit mechanisms should be used more actively to encourage the financing provided to the private sector by the participation banks and to increase the efficiency of the financing provided to the public sector.
Detaylı Başlık
Türkiye’de Katılım Bankalarınca Sağlanan Finansman Türlerinin Ekonomik Büyüme Üzerine Etkisi
