Özet:

There is a wide empirical and theoretical literature on the causal relationship between financial liberalization and economic growth. The background of the issue is based on the McKinnon and Shaw hypothesis which emphasize that financial liberalization leads to economic growth via high saving and investment rates together with the technological improvements. While some empirical studies support McKinnon and Shaw hypothesis some others find contradictory evidence. In this context, utilizing recent data we investigate the relationship between financial liberalization and economic growth for Turkey over the period 1998-2012. Considering the structural breaks in the analysis period we first employ Zivot-Andrews unit root test and Gregory-Hansen cointegration analysis. Next we examine the causality relationship by means of Toda-Yamamoto methodology. Our main findings are; (i) there is a long run interaction between financial liberalization and economic growth, (ii) there is evidence of the causality running from economic growth to financial liberalization.

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