Dynamic impact of interest rate volatility and spillover effect of the U.S. interest rate on banking sector development of Turkey: empirical evidence from cointegration and causality analysis

Almahadin, Hamed Ahmad; Tuna, Gülcay

doi:10.1080/16081625.2017.1354709

Cited by 9 publications

(8 citation statements)

References 34 publications

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“…These results confirm that the financial integration between the U.S. and Turkish markets. These results also correspond with the findings of [ 38 ] and [ 9 ] that confirmed the U.S interest rates affect the Turkish markets. Also, the results showed that the ECT is negative and statistically significant at a 5% level.…”

Section: Introductionsupporting

confidence: 92%

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Impact of oil prices, the U.S interest rates on Turkey’s real estate market. New evidence from combined co-integration and bootstrap ARDL tests

2021

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The research aims to provide new empirical evidence by testing the impact of the external shocks namely: oil prices and the U.S interest rate on Turkey’s real estate market by using three techniques of co-integration tests namely: the newly developed bootstrap autoregressive distributed lag (ARDL) testing approach as proposed by (McNown et al. 2018), the new approach involving the Bayer-Hanck (2013) combined co-integration test, Hatemi-J (2008) co-integration testing approach. The ARDL model is utilized to explore the relationship between the variables. The findings show that the oil prices have a positive impact on Turkey’s real estate market, the results confirm that there is a significant impact of oil prices on Turkey’s real estate market through the domestic interest rate. Furthermore, the results demonstrated that there is a significant spillover influence of the U.S. interest rates on Turkey’s real estate market through oil prices and domestic interest rates. This study suggests that the following factors led to increasing the sensitivity and volatility of the Turkish real estate market to oil prices and the U.S. interest rate fluctuations: the presence of economic interdependence between the USA and Turkey, and the majority of the external debts and the reserve currency in Turkey are composed in the USD, and Turkey’s oil imports hit record high in last years. Finally, this article suggests that policymakers in Turkey should pay close attention to the effects of external shocks namely the oil prices and U.S. interest rates on Turkish markets to maintain economic and financial stability.

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Section: Introductionsupporting

confidence: 92%

“…[ 37 ] indicated that Turkey’s financial market is significantly correlated with the U.S. financial markets. [ 38 ] suggested that U.S. interest rates have a powerful impact on the Turkish banking sector. However, most empirical studies focused on the effect of the U.S. interest rates on the stock market.…”

Section: Introductionmentioning

confidence: 99%

Impact of oil prices, the U.S interest rates on Turkey’s real estate market. New evidence from combined co-integration and bootstrap ARDL tests

2021

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“…to an increase (decrease) in energy consumption and then subsequently affect CO2 emissions. According to many empirical studies, RIN can affect economic performance by macroeconomic channels(Sokolov et al, 2011;Missio et al, 2015;Almahadin and Tuna, 2017; …”

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confidence: 99%

Testing the Impact of Banking Sector Development on Turkey’s Co2 Emissions

Samour¹

2019

Appl. Ecol. Env. Res.

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This article aims to introduce a new research topic by investigating the role of banking sector development on Turkey's CO2 emissions for the time period 1980-2014. Autoregressive Distributed Lag (ARDL), Fully Modified-OLS (FMOLS), and Canonical Co-integrating Regression (CCR) models are applied to test the coefficients between the variables. The newly-developed Bayer-Hanck combined cointegration test is used to support the robustness of the ARDL bounds test. The results show that banking sector development led to an increase in CO2 emissions. The improvements in the Turkish banking sector development could lead to increased investment and energy consumption, which would subsequently cause raise in CO2 emissions. Furthermore, the results show that an increase in the RIN would lead to decrease in CO2 emissions. RIN has fundamental repercussions for the economy by either impacting the cost of capital or influencing the availability of credit, which in turn determines the level of savings as well as that of investment in an economy, which may subsequently affect CO2 emissions. It is suggested that policy-makers should use the banking sector development and RIN channels to reduce environmental degradation by introducing monetary policy reforms, while also encouraging energy investment and the production of electricity using renewable sources.

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“…The positive significant coefficient of debt in default (0.0006) implies that a country with low default could improve banking efficiency, which requires policymakers and regulators to adopt new strategies that facilitate and restrict laws to protect the banking sector (Almahadin & Tuna, 2019; Chortareas et al, 2012; Claessens & Laeven, 2004; Fries & Taci, 2005; Goddard et al, 2011; Grigorian & Manole, 2002; Sufian & Majid, 2012). The positive significant coefficient of economic performance (0.0014) suggests that higher economic performance in union countries could result in better levels of banking efficiency.…”

Section: Discussionmentioning

confidence: 99%

Does Country Risk Affect Banking Efficiency: Empirical Evidence from Turkey and Selected Countries from the European Union

Al-Gasaymeh

Samarah

2020

Global Business Review

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This study explores the readiness of the Turkish banking sector for its accession to the European Union (EU). Obviously, the job is not finished yet, with the challenges of introducing country risk variables and their impact on banking efficiency. Although efficiency analysis remains an important issue in economic studies to answer whether the Turkish banking sector is ready for the accession to the EU. Therefore, this study aims to investigate the impact of country risk levels on banking efficiency in Turkey and the EU in recent years, using stochastic frontier analysis for a parametric technique for the period 2010–2018. In the second stage, efficiency measures are used to investigate the effect of country risk and macroeconomic variables, applying the generalized method of moments. The results suggest that the banking sector operating in a country with low risk tends to perform more efficiently.

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Dynamic impact of interest rate volatility and spillover effect of the U.S. interest rate on banking sector development of Turkey: empirical evidence from cointegration and causality analysis

Cited by 9 publications

References 34 publications

Impact of oil prices, the U.S interest rates on Turkey’s real estate market. New evidence from combined co-integration and bootstrap ARDL tests

Impact of oil prices, the U.S interest rates on Turkey’s real estate market. New evidence from combined co-integration and bootstrap ARDL tests

Testing the Impact of Banking Sector Development on Turkey’s Co2 Emissions

Does Country Risk Affect Banking Efficiency: Empirical Evidence from Turkey and Selected Countries from the European Union

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