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.
Article Details
- Year: 2013
- Volume: 34
- Issue: 3
- Pages: 23 - 34
- Accepted: 21.06.2013
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DOI:
https://doi.org/10.5281/zenodo.21075916 -
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How to Cite?
Pelin Varol İyidoğan (2013). Nonlinear Causality Analysis of Finance-Growth Relation: Evidence from Turkey. Journal of Economic Cooperation and Development, 34(3), 23-34. https://doi.org/10.5281/zenodo.21075916
