Abstract:

The role of financial markets in today’s global economic conditions has gained great importance. The development of the financial markets plays an important role in the economic development of the developing countries. This study examined the effects of financial development, private sector loans, the depth of the financial market and the reduction of poverty of economic growth. The study, which used data from the next-11 countries for the period 2000-2018, used panel integration and causality analysis. Durbin-Hausman equalization analysis results showed the existence of a long-term relationship between the variables. According to the results of Emirmahmutoğlu and Köse causality analysis, a double causal relationship between the financial market depth, private sector loans and economic growth and poverty reduction has been identified. The reason for the reduction of poverty from financial development has not been identified. The results of causal analysis are different on the basis of countries. Causability analysis results confirm the theory of drops.

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