The Role of the Financial Sector in the Turkish Cypriot Economy: Evidence from Bounds and Causality Tests

Fethı, Sami; Katırcıoğlu, Salih; Çağlar, Dilber

doi:10.1080/14683849.2013.833018

Cited by 9 publications

(5 citation statements)

References 59 publications

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“…This study used the depth variable to represent financial development; this variable was the ratio of government liabilities to GDP. Another study by Fethi et al (2013) provided evidence for the financial sector's investment contributions to the output level of the North Cyprus economy in both the short-run and long-run. This study suggested a unidirectional causality from finance to growth.…”

Section: Finance-growth Nexusmentioning

confidence: 99%

Does financial depth impact economic growth in North Cyprus?

Türsoy

Faisal

2018

Financ Innov

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This study purpose is to connect the proxy of financial development which is total banking sector's deposits with the economic growth in North Cyprus. The reason for using the total deposit differently with the existing literature is because North Cyprus is bank-based financial system. Therefore, this study provides an analysis of the connection between finance-growth nexus in North Cyprus from 1978 through 2015, using the autoregressive distributed lag (ARDL) model and combined cointegration to evaluate and verify the relationship. In addition, this research added the inflation rate to the model specification to investigate the inflation-growth interaction. The results revealed that both methods of cointegration provided robust evidence for a long-run relationship between financial debt and growth. The ARDL long-run and short-run coefficients showed the positive impact of depth and the negative impact of inflation on economic growth, thereby confirming the strength of the financegrowth and inflation-growth connections. Moreover, financial depth had a larger coefficient than the inflation rate. Finally, the VECM Granger causality test provided evidence for unidirectional causality from the total deposits and inflation rate to economic growth in North Cyprus. These results are significant for the policymakers of North Cyprus because the findings show that economic growth can be improved by enhancing the deposit rates in the financial system.

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Section: Finance-growth Nexusmentioning

confidence: 99%

Does financial depth impact economic growth in North Cyprus?

Türsoy

Faisal

2018

Financ Innov

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“…The relationship between economic and financial growth for the TRNC was investigated by Jenkins and Katircioglu (2010) and Fethi et al (2013), andTursoy andFaisal (2018). Jenkins and Katircioglu (2010) confirmed the long-run equilibrium relationship between financial development and economic growth, additionally, the outcomes of the Granger Causality test showed that a rise in real income improves the growth of the money supply, which has been used as a measure of financial progress.…”

Section: Introductionmentioning

confidence: 99%

“…Jenkins and Katircioglu (2010) confirmed the long-run equilibrium relationship between financial development and economic growth, additionally, the outcomes of the Granger Causality test showed that a rise in real income improves the growth of the money supply, which has been used as a measure of financial progress. According to Fethi et al (2013), both in the long and short-term investments in the finance and banking sectors are significant drivers of economic development in the Northern Cyprus economy. However, empirical evidence in their study indicates that private credit in the financial sector does not induce production growth in the short or long-run.…”

Section: Introductionmentioning

confidence: 99%

The Role of Higher Education and Financial Development on Economic Growth: Evidence on North Cyprus

İmamoğlu,

Öznacar

2024

Trends in Business and Economics

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This research aims to examine the effects of the development in the higher education and financial sector on economic growth in the case of North Cyprus. Findings of time series data show that there is a long-term equilibrium relationship between real income and its elements such as labor, capital, higher education, and financial growth. Results show that both capital and labor have a statistically significant effect on economic growth. Additionally, development in the financial sector is a significant contributor to economic growth, however, higher education shows evidence of greater contribution to economic growth in North Cyprus. It draws attention that the higher education sector has a greater impact on economic development than the financial sector. In this context, government authorities should support both the financial and higher education sectors in order to accelerate their contribution to economic development. Policymakers needed to concentrate more on the higher education sector in Northern Cyprus.

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“…As Chen (2007) demonstrates, business conditions impact the stock prices of firms and, therefore, their business performance. On the other hand, the role of the financial sector in the economies has been extensively evaluated in the relevant literature (Chandio, 2014; Duasa, 2011; Fethi et al, 2013; Fethi & Katircioglu, 2015; Gungor et al, 2014; Jenkins & Katircioglu, 2009; Karacaer & Kapusuzoglu, 2010; Kaushal & Pathak, 2015; Omotor, 2008; Roy, 2012; Saqib & Waheed, 2011; Waheed & Younus, 2010). Because stock prices also reflect investors' future expectations about corporate earnings of firms and their corporate performance (Chaney et al, 1991; Chen, 2007; Choi et al, 1999; McWilliams & Siegel, 1997).…”

Section: Introductionmentioning

confidence: 99%

The effects of business and finance conditions on the tourism stock markets: An empirical investigation from Turkey

Katırcıoğlu

2022

Int. J Fin Econ

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This study investigates interactions between the stock performance of tourism firms and business and finance conditions in a vast tourist destination country, Turkey. Results of the study confirm the long‐term significant effects of the business and finance environment on the stock performance of Turkish tourism firms using a stock valuation model. Furthermore, the study shows that the tourism stock markets are highly sensitive to aggregate macroeconomic and industrial activity, financial markets, tourism climate, exchange rate markets and country's inflation levels since these aggregates exert highly elastic effects on the tourism stock prices.

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The Role of the Financial Sector in the Turkish Cypriot Economy: Evidence from Bounds and Causality Tests

Cited by 9 publications

References 59 publications

Does financial depth impact economic growth in North Cyprus?

Does financial depth impact economic growth in North Cyprus?

The Role of Higher Education and Financial Development on Economic Growth: Evidence on North Cyprus

The effects of business and finance conditions on the tourism stock markets: An empirical investigation from Turkey

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