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Nonlinear causality analysis of finance-growth relation: Evidence from Turkey

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Abstract

The aim of this study is to examine the causal relation between financial deepening and economic growth by means of Smooth Transition Autoregressive (STAR) model-based Granger causality analysis applied to the monthly data of Turkey over the period 1998M1-2012M3. The results show that non-linear structure of the series should be considered as the evidence from linear and non-linear causality analysis differs. According to non-linear Granger causality analysis, the financial deepening is found to be causing variable for economic growth in Turkey.

Original languageEnglish
Pages (from-to)23-34
Number of pages12
JournalJournal of Economic Cooperation and Development
Volume34
Issue number3
Publication statusPublished - 2013

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

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