scholarly journals Interactions between Economic Growth, FDI and Islamic Banking Development in Turkey

2016 ◽  
Vol 11 (8) ◽  
pp. 230 ◽  
Author(s):  
Salih Kalayci ◽  
Behic Efe Tekin
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Linear Regression Analysis ◽  
Granger Causality Test ◽  
Islamic Banking ◽  
Causality Test ◽  
Bank Deposits ◽  
Integration Test ◽  
Considerable Impact ◽  
Banking Development

<span lang="EN-US">In this research paper, the quarter data has been collected from Turkish Central Bank in order to determine the relationship between economic growth, FDI and participation banks of Turkey over the periods of 2002 - 2014. Several econometrical models have been implemented to reveal this relation among variables. In this context, it has been found that there is a long-term linkage between economic growth, FDI and breakdown of participation funds in Islamic banking by implementing Johansen co-integration test. On the other hand, according to Granger causality test (GCT), when the lag number is 3, there is a bidirectional relationship between GDP and participation funds in Islamic banking. According to results of both Johansen co-integration and Granger causality test, the contribution of Islamic banking to*the economic growth of Turkey is so vital. The linear regression analysis has to be used to reply the research questions. The results indicated that there is the considerable impact of GDP on Islamic bank deposits in Turkey which is founded 0.0006.</span>

scholarly journals PERBANKAN SYARIAH DAN PERTUMBUHAN EKONOMI INDONESIA

2013 ◽  
Vol 2 (1) ◽  
Author(s):  
Ali Rama
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Granger Causality ◽  
Capital Market ◽  
Granger Causality Test ◽  
Dynamic Interaction ◽  
Islamic Banking ◽  
Causality Test ◽  
Long Run ◽  
Banking Development

The paper empirically examines the dynamic interaction between Islamic banking development, capital market, trade activities, inflation and economic growth in Indonesia using battery of time series techniques. The study documents a long-run equilibrium between Islamic banking, capital market, trade activities, inflation and economic growth. Granger causality test reveals that there is a bidirectional causality between Islamic banking-growth in Indonesia, the finding accords with “the feedback hypothesis” or bidirectional causality view”. Based on the VDCs, the study discovers that the variations in the economic growth rely very much on its own innovation. The finding also shows that Islamic banking financing innovation significantly explains the variation in economic growth. To further promote contributions of Islamic banking to economic growth, the authority should provide friendly policies to accelerate its development in the countryDOI: 10.15408/sjie.v2i1.2372

scholarly journals Granger Causality Between Local Government Expenditure and Economic Growth in Indonesia

2018 ◽  
Vol 3 (4) ◽  
pp. 80-86
Author(s):  
Sri Kurniawati
Keyword(s):  
Economic Growth ◽  
Local Government ◽  
Granger Causality ◽  
Government Expenditure ◽  
Granger Causality Test ◽  
Reciprocal Relationship ◽  
Series Data ◽  
Causality Test ◽  
West Kalimantan ◽  
Integration Test

Objective - This study examines the causal relationship between government expenditure and economic growth in West Kalimantan between 2009 and 2015. This research resulted in the enactment of Wagner's Law and/or Keynes's Theory in West Kalimantan leading the local government to take the right policies as an effort towards improving economic development. Methodology/Technique - By using panel data that combines time series data and cross-site data, it will be estimated by the Granger causality test which begins with a stationary test and co-integration test. Based on the co-integration tests, the results suggest that there is a long-term relationship between government expenditure and economic growth. Meanwhile, based on the Granger causality test, there is no reciprocal relationship between government expenditure and economic growth. Findings - A direct relationship in the form of the influence of government expenditure on economic growth in West Kalimantan. Novelty - These results are in line with the Keynes's Theory through its national income function. Type of Paper: Empirical Keywords: Government Expenditure; Economic Growth; Co-integration; Causality. JEL Classification: F40, F43, F49.

scholarly journals Examining the Causal Relationship between Private Sector Credit Extended and Economic Growth in Namibia

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 23-29
Author(s):  
Andreas . ◽  
J P S Sheefeni
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Test Results ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Stationarity Test ◽  
Lending Rates

The paper examined causality between Private Sector Credit Extension (PSCE) and Economic growth using quarterly data for the period 2000:Q1-2017:Q4, in Namibia. The variables employed were Gross Domestic Product (GDP), Private Sector Credit Extended, Broad Money Supply (M2) and lending rates. The study tested for stationarity in order to determine the order of integration. Furthermore, a co-integration test was conducted on different sets of variables to establish the long run relationship. Granger causality test was also conducted to establish the direction of the relationships between the variables. The results for the stationarity test showed a combination of different orders of integration. The co-integration test revealed a stable long-run relationship among the variables. The Granger causality test results revealed one-directional causality running from PSCE to GDP. Therefore, one can conclude that that change in private sector credit extended can help predict economic growth.

scholarly journals Analyzing the effect of financial development on economic growth – the Jordanian experience

2019 ◽  
Vol 16 (1) ◽  
pp. 119-127 ◽  
Author(s):  
Izz Eddien N. Ananzeh ◽  
Mohammad D. Othman
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Market ◽  
Banking System ◽  
Granger Causality Test ◽  
Causality Test ◽  
Integration Test ◽  
Broad Concept ◽  
Short Run ◽  
The Impact

This study came to inspect the impact of the development of both financial market and banking system on the economic growth of Jordan based on the annual data covering the period 1993–2017. Through the use of many methodologies: Johansen cointegration test, (VECM), and Granger causality test, where real GDP was used as an indicator of economic growth, the real market value of stocks (Market Capitalization) (LCAP) and Share Turnover (LTURN) are indicators for the financial market, Money supply in the broad concept (LM2), and Local domestic credit (LCR) are indicators for the banking sector.The results of this study reported that the study variables are stationary, and in the level of order 2, they are integrated, and a long-run relationship between the study variables existed according to the Johansen co-integration test. VECM model result and the target model result confirm a short-run causality running from the all variables toward GDP. Granger causality test underline a single directional causality running from variables of our study to GDP and denote the short-run impact between LCAP, LTURN, LM2, LCR, and LGDP. The analysis of the variance decomposition shows that the development of the banking system affects economic growth almost equally with the impact of the development of the financial market. The results go to the same line of supply-leading hypothesis.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

The Relationship Between Stock Market Indices of the Biggest Six Economies of the European Union and BIST 100

2020 ◽  
pp. 257-275
Author(s):  
Serdar Ögel ◽  
Fatih Temizel
Keyword(s):  
European Union ◽  
Stock Market ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Var Model ◽  
The European Union ◽  
Causality Test ◽  
Integration Test ◽  
Causality Relationship ◽  
The Relationship

This chapter examines the relationship between stock market indices of the biggest six economies of the European Union and BIST 100. In this context, this study used the daily time series regarding indices of DAX for Germany, CAC 40 for France, FTSE MIB for Italy, IBEX 35 for Spain, AEX for Holland, FTSE 100 for United Kingdom, and BIST 100 for Turkey from 2014 to 2018. To test whether there is a co-integration relationship among indices, Johansen co-integration test was used. Since a co-integration relationship was not found between series, causality relationship between the European stock market indices and Turkey was tested with Granger causality test by establishing standard VAR model. As a result, a unidirectional Granger causality relationship was found from DAX, FTSE 100, CAC 40, IBEX 35, and AEX to BIST 100 according to lag length 1 and 2. However, a unidirectional Granger causality relationship was only found from FTSE MIB to BIST 100 for lag length 1. For lag length 1 and 2, no causality relationship was found from BIST 100 to the selected European stock market indices.

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