Author
BALKI, Ali
Publication Place
University of Afyon Kocatepe -
University of Afyon Kocatepe
Subject
Economic development, Expenditures, Public
Type
Book
Language
ara,eng
Digital
Yes
Manuscript
No
Library
Leitir Library
Library Asset ID
ISSN: 2757-8399, EISSN: 2757-8399, DOI: 10.52637/kiid.1353457
Record ID
cdi_doaj_primary_oai_doaj_org_article_aa00ec2b692f4da4b17c2c3243efaf26
Library Location
DOAJ Directory of Open Access Journals
Notes
The financial sector, which mediates the exchange of funds in economies, is extremely important in the growth and development of economies. The more developed a country's financial sector is, the more resilient it is to possible shocks in the economy. Participation banking has contributed greatly to the development and deepening of the banking sector in the last twenty years. From this point of view, the subject of the study is to examine the effects of both traditional banks and participation banks on economic growth. Since this study aims to compare the effects of the traditional banking sector and the participation banking sector on economic growth, the subject has been examined within the framework of two different models. Unlike other studies, public expenditures are included as independent variables in the models created in order to see the effects of the public sector. In this respect, the study differs from other studies in the literature. Quarterly data obtained from the Central Bank of the Republic of Türkiye and the Ministry of Treasury and Finance cover the period 2006-2022. The gross domestic product variable was used as the dependent variable in both models. Since the first model created focuses on the effects of the participation banking sector on the economy, the funds collected and financing provided by participation banks were used as independent variables. In the second model, since the effects of the traditional finance sector on the economy will be measured, the deposits collected and loans provided by traditional banks are used as independent variables. All variables included in the models have been made real by removing the effects of price movements. In addition, all variables were included in the analyzes in logarithmic form and were adjusted for seasonal effects. Dummy variables were added to the models taking into account significant breaks in the dependent variable. When the descriptive statistics of the variables in the models are examined, it is seen that the mean and median values of all variables are quite close and comply with normal distribution. It can be said that taking the natural logarithms of all variables and thus trimming outliers was effective on this result. In addition, all variables have positive slopes and the highest volatility belongs to gross domestic product and public expenditure variables. Since variables containing stochastic trend effects may cause spurious regression, both traditional and structural break unit root tests were applied to the variables. The traditional unit root test, which does not take into account structural breaks, provides contradictory results for the dependent variable, gross domestic product. According to the results of unit root test with structural breaks, the public expenditure variable, which is a common variable in both models, is stationary at the level. Similarly, while the funds collected by participation and traditional banks are stationary at level level, other variables are stationary at first differences. According to the unit root test with structural breaks, the variables are stationary at different levels. Under these conditions, the ARDL bounds test method, which provides effective predictions, was preferred. According to the analysis results made in the first model established to measure the effects of the participation banking sector on economic growth, all variables in the model move together in the long term and a cointegration relationship has been determined. While the effect of financing provided by participation banks and public expenditures on gross domestic product is positive, the effect of funds collected by participation banks is negative. This result shows that the financing provided by participation banks is used effectively by positively affecting economic activities. However, participation banks cannot use the funds they collect effectively. In the second model established to analyze the effects of traditional banks on economic growth, the variables move together in the long run and a cointegration relationship emerges. While the effect of loans provided by traditional banks and public expenditures on gross domestic product is positive, the effect of deposits collected is negative. These results show that bank loans are provided in a way that positively affects the economy. Like participation banks, traditional banks cannot use the deposits they collect in a way that positively affects economic activities. In addition, since the coefficient showing the effect of the funds provided by participation banks on gross domestic product in the first model is larger than the coefficient of traditional bank loans, it has been concluded that participation banks are more effective in financing than traditional banks. In both models, a positive relationship was detected between public expenditures and economic growth. This result supports the Keynesian hypothesis. The financial sector, which mediates the exchange of funds in economies, is critical in the growth and development of economies. The more developed a country's financial sector is, the greater its resilience to possible economic shocks. Participation banking has contributed significantly to the development and deepening of the banking sector in the last two decades. From this point of view, the subject of the study is to examine the effects of both traditional and participation banks on economic growth. This study examines the subject within the framework of two different models to compare the effects of the traditional banking sector and participation banking sector on economic growth. In the models created, unlike other studies, public expenditures are included as an independent variable to see the public sector's effects. In this respect, the study differs from other studies in the literature. Quarterly data from the Central Bank of the Republic of Türkiye and the Ministry of Treasury and Finance cover 2006-2022. In both models, the dependent variable is gross domestic product. Since the first model focuses on the effects of participation banking on the economy, it uses the funds collected by participation banks and the financing they provide as independent variables. The second model uses deposits and loans collected by traditional banks as independent variables, as it will measure the effects of the traditional financial sector on the economy. All of the variables in the models have been made real by removing the effects of price movements. In addition, all variables were included in the analysis in logarithmic form and seasonally adjusted. Dummy variables were added to the models, considering the significant breaks in the dependent variables. According to the descriptive statistics test results, all the variables' mean and median values are close and conform to the normal distribution. Taking the natural logarithms of all the variables and thus filing the outliers influence this result. In addition, all variables are positively sloped, and the highest volatility belongs to the gross domestic product and public expenditures variables. Since the stochastic trend effects of the variables may cause spurious regression, both traditional and structural break unit root tests were applied for the variables. The traditional unit root test, which does not consider structural breaks, provides contradictory results for the dependent variable, gross domestic product. According to the structural break unit root test results, the public expenditure variable, an ordinary variable in both models, is stationary at the level. Similarly, funds collected by participation and deposit banks are stationary at the level, while other variables are stationary at first differences. According to the structural break unit root test, the variables are stationary at different levels. Under these conditions, the ARDL bounds test method was preferred, which provides efficient estimations. According to the results of the analysis made in the first model established to measure the effects of participation banking on economic growth, all the variables in the model act together in the long run, and there is a cointegration relationship. While the effect of financing provided by participation banks and public expenditures on the gross domestic product is positive, the effect of funds collected by participation banks is negative. This result shows that the financing provided by the participation banks is used effectively by positively affecting the economic activities. However, participation banks cannot effectively use the funds they collect. In the second model, which was established to analyze the effects of traditional banks on economic growth, the variables move together in the long run, and a cointegration relationship emerges. While the effect of loans extended by traditional banks and public expenditures on the gross domestic product is positive, the effect of deposits collected is negative. These results show that bank loans are used in a way that will positively affect the economy. As with participation banks, traditional banks cannot use the deposits they collect in a way that will positively affect economic activities. In addition, since the coefficient showing the effect of the funds provided by participation banks on the gross domestic product in the first model is larger than the coefficient of traditional bank loans, participation banks are more efficient in financing than traditional banks. There is a positive relationship between public expenditures and economic growth in both models. This result supports the Keynesian hypothesis.
Detaylı Başlık
Katılım Bankacılığı ve Geleneksel Bankacılık ile Ekonomik Büyüme İlişkisinin Karşılaştırmalı Analizi: Türkiye Örneği
