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Finansal Gelişme ve Ekonomik Büyüme: Euro Bölgesi ve Gelişmekte Olan Avrupa Ülkeleri Arasında Karşılaştırmalı Bir Analiz

Year 2017, Volume: 20 Issue: 38, 179 - 202, 01.12.2017
https://doi.org/10.31795/baunsobed.645127

Abstract

Bu çalışma finansal gelişme ve ekonomik büyüme arasındaki nedensellik ilişkisini Euro Bölgesi ve gelişmekte olan Avrupa ülkeleri kapsamında analiz etmektedir. Her iki ülke grubu için söz konusu ilişki liteatürde var olan arz itişli ve talep çekişli hipotezler bağlamında hangisinin geçerli olduğunun belirlenmesi için karşılaştırmalı bir analiz yapıl*PhD, Research Assistant, Manisa Celal Bayar University/ Faculty of Economics and Administrative Sciences/Department of Economics, filiz.eratas@cbu.edu.tr, ORCID ID: orcid.org/0000-0003-2052-340X.**PhD, Research Assistant, Sinop University/Boyabat Faculty of Economics and Administrative Sciences/Department of Economics, yagmur.saglam@sinop.edu.tr, ORCID ID: orcid.org/0000-0002-8641-7346.mıştır. Panel veri analizinin kullanıldığı amprik modelde, öncelikle değişkenlerin homojenliği Delta testi yardımıyla araştırılmış, sonrasında değişkenlerin yatay kesit bağımlılığı CDlm testi aracılığı ile incelenmiştir. Ayrıca serilerin durağanlığı ikinci nesil birim kök testti olarak adlandıralan heterojenliği ve yatay kesit bağımlılığını dikkate alan CADF testi ile sınanmıştır. Seriler arası eşbütünleşik ilişkinin varlığı ispatlandıktan sonra, uzun dönem regresyon katsayıları tahminlenmiştir. Panel nedensellik testin elde edilen sonuçlara göre, söz konusu iki farklı Avrupa grubu ülkesi için finansal gelişme ve ekonomik büyüme arasında çift yönlü feedback bir nedensellik ilişkisi vardır

References

  • Andersen, B., T., Jones, S. and Tarp, F. (2015). The Finance-Growth Thesis: A Sceptical Assessment. Journal of African Economies, 21(1): i57-i58.
  • Akıncı, Y., G., Akıncı, M. and Yılmaz, Ö. (2014). Financial Development- Economic Growth Nexus: A Panel Data Analysis Upon OECD Countries. Hitotsubashi Journal of Economics, 55: 33-50.
  • Bangake, C. and Eggoh, J., C. (2009). Further Evidence on Finance-Growth Causality: A panel Data Analysis. Econoic Systems, 35(2): 176-188.
  • Caporale, M., C., Rault, C., Sova, A. R. (2009). Financial Development and Economic Growth: Evidence from Ten New EU Members. DIW Berlin, Discussion Papers, No. 904:1-39.
  • Cojacaru, L., H. S. and J. Miller (2011). Financial Development and Economic Growth: Emprical Evidence From CEE and CIS Countries, Working Paper Series, 22: 1-30.
  • Chandavarkar, A. (1992), Finance And Development: Neglected and Unsettled Questions, World Development 20, pp.133-142.
  • Dumetriscu, E. I. and Christophe, H. (2012). Testing for Granger Non-Causality in Heterogeneous Panels. Economic Modelling. 29(4):1450-1460.
  • Eng, Y., and Habibullah M. S. (2011), Financial Development and Economic Growth Nexus: Another Look at the Panel Evidence from Different Geographical Regions, Bank and Bank Systems, 6(1): 62-71.
  • George, E. H. and Marianna, K. T. (2010). Financial Development and Economic Growth: Evidence From The European Union. Managerial Finance, 36(11): 949-957.
  • Gill, I., M., Raiser, A., Dall’Olio, T. Packard, K. Richter, Sugawara N., Veugelers R., Zalduendo J. (2012). Golden Growth: Restoring the Lustre of European Growth Model. World Bank: Washington, DC., http://www.worldbank. org/en/region/eca/publication/golden-growth, (09.03.2016).
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  • Güloğlu, B. and İspir, S. (2009). Yeni Gelişmeler Işığında Türkiye’de Satın Alma Gücü Paritesi Önsavının Panel Birim Kök Sınaması. Pamukkale University CASE-Economics Department Publishings.
  • Underdeveloped Countries. Economic Development and Cultural Change, 14:174-189.
  • Pesaran, H., M. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Working Paper No:0435. University of Cambridge.
  • Pesaran, H., M. (2006). Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica. 74(4):967-1012.
  • Pesaran, H., M. (2007). A Simple Panel Unit Root Test in the Presence of Cross Section Dependence. Journal of Applied Econometrics. 22(2): 265-312.
  • Pesaran, H. M. (2013). Large Panel Data Models with Cross-Sectional Dependence: A course on Panel Data Models, University of Cambridge. pp:1-67.
  • Pesaran, H., M., and Yamagata, T. (2008). Testing Slope Homogeneity in Large Panels. Journal of Econometrics. 142:50–93.
  • Pesaran, H., M.,Ullah, A. and Yamagata, T., (2008). A Bias-Adjusted Lm Test of Error Crosssection Independence. The Econometrics Journal. 11(1): 105- 127.
  • Pradhan, R., P. (2011). Financial Development, Growth And Stock Market Development: The Trilateral Analysis in India. Journal of Quantitative Economics. 9(1): 134-145.
  • Pradhan, R., P., Dasgupta, P. and Samadhan, B. (2013). Finance, Development and Economic Growth in BRICS: A Panel Data Analysis. Journal of Quantitative Economics, 11(1&2): 308-322.
  • Robinson, J. (1952). The Generalization of the General Theory, In The Rate of Interest and Other Essays, London, Macmillan, pp. 69-142.
  • Schumpeter, J. (1912). The Theory of Economic Development, Cambridge, MA, Harvard University Press.
  • Quayyum, A., Siddiqui, R. and Hanif, M. N. (2012). Financial Development and Economic Growth: Evidence from Heterogeneous Panel Data of Low Income Countries. Financial Reseacrh, 1(1): 15-25.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics. 23:193-233.
  • Yıldırım, S., Özdemir, B. K. and Doğan, B. (2013). Financial Development and Economic Growth Nexus in Emerging European Countires: New Evidence from Asymmetric Causality. International Journal of Economics and Financial Issues, 3(3): 710-722.

FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: A COMPARATIVE ANALYSIS BETWEEN EURO AREA AND EMERGING -DEVELOPING EUROPE

Year 2017, Volume: 20 Issue: 38, 179 - 202, 01.12.2017
https://doi.org/10.31795/baunsobed.645127

Abstract

This paper examines the casuality between financial development and economic growth in Euro Area and Emerging-developing European countries. In this study, there is a comparative analysis to clarify the direction of the relationship and to understand which hypothesis are already accepted in the literature such as demand-following and supply-leading available for both group of countries. Panel data analysis has been used to test the empirical model; firstly the homogeneity of the variables is investigated by Delta test and then the cross section dependence is examined with the CDlm test. Also, the stationary of the series is tested with CADF which is called second-generation unit root test and consider heterogeneity and cross section dependece. After proving the existence of the cointegration relationship between the series, the long term regression parameters are estimated. According to the empirical results obtained from panel causality test, there is a feedback relationship between economic growth and financial development for both groups of the EU countries

References

  • Andersen, B., T., Jones, S. and Tarp, F. (2015). The Finance-Growth Thesis: A Sceptical Assessment. Journal of African Economies, 21(1): i57-i58.
  • Akıncı, Y., G., Akıncı, M. and Yılmaz, Ö. (2014). Financial Development- Economic Growth Nexus: A Panel Data Analysis Upon OECD Countries. Hitotsubashi Journal of Economics, 55: 33-50.
  • Bangake, C. and Eggoh, J., C. (2009). Further Evidence on Finance-Growth Causality: A panel Data Analysis. Econoic Systems, 35(2): 176-188.
  • Caporale, M., C., Rault, C., Sova, A. R. (2009). Financial Development and Economic Growth: Evidence from Ten New EU Members. DIW Berlin, Discussion Papers, No. 904:1-39.
  • Cojacaru, L., H. S. and J. Miller (2011). Financial Development and Economic Growth: Emprical Evidence From CEE and CIS Countries, Working Paper Series, 22: 1-30.
  • Chandavarkar, A. (1992), Finance And Development: Neglected and Unsettled Questions, World Development 20, pp.133-142.
  • Dumetriscu, E. I. and Christophe, H. (2012). Testing for Granger Non-Causality in Heterogeneous Panels. Economic Modelling. 29(4):1450-1460.
  • Eng, Y., and Habibullah M. S. (2011), Financial Development and Economic Growth Nexus: Another Look at the Panel Evidence from Different Geographical Regions, Bank and Bank Systems, 6(1): 62-71.
  • George, E. H. and Marianna, K. T. (2010). Financial Development and Economic Growth: Evidence From The European Union. Managerial Finance, 36(11): 949-957.
  • Gill, I., M., Raiser, A., Dall’Olio, T. Packard, K. Richter, Sugawara N., Veugelers R., Zalduendo J. (2012). Golden Growth: Restoring the Lustre of European Growth Model. World Bank: Washington, DC., http://www.worldbank. org/en/region/eca/publication/golden-growth, (09.03.2016).
  • Goldsmith, R., W. (1969). Financial Structure and Development, New Haven, CT, Yale University Press.
  • Güloğlu, B. and İspir, S. (2009). Yeni Gelişmeler Işığında Türkiye’de Satın Alma Gücü Paritesi Önsavının Panel Birim Kök Sınaması. Pamukkale University CASE-Economics Department Publishings.
  • Underdeveloped Countries. Economic Development and Cultural Change, 14:174-189.
  • Pesaran, H., M. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Working Paper No:0435. University of Cambridge.
  • Pesaran, H., M. (2006). Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica. 74(4):967-1012.
  • Pesaran, H., M. (2007). A Simple Panel Unit Root Test in the Presence of Cross Section Dependence. Journal of Applied Econometrics. 22(2): 265-312.
  • Pesaran, H. M. (2013). Large Panel Data Models with Cross-Sectional Dependence: A course on Panel Data Models, University of Cambridge. pp:1-67.
  • Pesaran, H., M., and Yamagata, T. (2008). Testing Slope Homogeneity in Large Panels. Journal of Econometrics. 142:50–93.
  • Pesaran, H., M.,Ullah, A. and Yamagata, T., (2008). A Bias-Adjusted Lm Test of Error Crosssection Independence. The Econometrics Journal. 11(1): 105- 127.
  • Pradhan, R., P. (2011). Financial Development, Growth And Stock Market Development: The Trilateral Analysis in India. Journal of Quantitative Economics. 9(1): 134-145.
  • Pradhan, R., P., Dasgupta, P. and Samadhan, B. (2013). Finance, Development and Economic Growth in BRICS: A Panel Data Analysis. Journal of Quantitative Economics, 11(1&2): 308-322.
  • Robinson, J. (1952). The Generalization of the General Theory, In The Rate of Interest and Other Essays, London, Macmillan, pp. 69-142.
  • Schumpeter, J. (1912). The Theory of Economic Development, Cambridge, MA, Harvard University Press.
  • Quayyum, A., Siddiqui, R. and Hanif, M. N. (2012). Financial Development and Economic Growth: Evidence from Heterogeneous Panel Data of Low Income Countries. Financial Reseacrh, 1(1): 15-25.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics. 23:193-233.
  • Yıldırım, S., Özdemir, B. K. and Doğan, B. (2013). Financial Development and Economic Growth Nexus in Emerging European Countires: New Evidence from Asymmetric Causality. International Journal of Economics and Financial Issues, 3(3): 710-722.
There are 26 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Economic and Administrative Sciences
Authors

Filiz Erataş Sönmez

Yağmur Sağlam

Publication Date December 1, 2017
Submission Date January 17, 2017
Published in Issue Year 2017 Volume: 20 Issue: 38

Cite

APA Sönmez, F. E., & Sağlam, Y. (2017). FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: A COMPARATIVE ANALYSIS BETWEEN EURO AREA AND EMERGING -DEVELOPING EUROPE. Balıkesir Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 20(38), 179-202. https://doi.org/10.31795/baunsobed.645127

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