Analysis of the Relationship between Interest Payments and Economic Growth with Panel Data Method: The Case of Islamic Countries

Abdulkadir Atar; Mehmet Akif Peçe

Makale detayları

Analysis of the Relationship between Interest Payments and Economic Growth with Panel Data Method: The Case of Islamic Countries

Yazarlar:

Abdulkadir Atar | Mehmet Akif Peçe

Yayıncı:

Mustafa Süleyman ÖZCAN

Ana Başlıklar:

İslam Ekonomisi

Dergi:

İnsan ve Toplum Bilimleri Araştırmaları Dergisi Vol.12 Issue 5, pp.2521-2536

Belge Tipi:

Makale

Yayın Tarihi:

12/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001303154

pISSN:

2147-1185

Anahtar kelimeler:

Özet:

 The search for an alternative model instead of the interest system, which is one of the most important economic issues for firm investments in the economic literature, is of great importance, especially in Islamic countries or countries with a predominantly Muslim population. Although interest is a difficult topic to give up in todays economic literature, studies in this field will increase the importance of alternative applications by revealing the negative results of interest in a scientific framework. The aim of this study is to reveal the relationship between interest payments and economic growth in Islamic countries. In addition, the study is the most up-to-date study among the few studies on interest and economic growth on Islamic countries. Since the analysis aimed to reveal the effect of interest payments, which is an item of transfer expenditures, on growth in a more meaningful way, consumption and investment expenditures were also included as control variables in the analysis. In the study, a panel data set covering the period of 1995-2020 for 11 Islamic countries was used. Although there are many more Islamic countries that are members of the Organization of Islamic Cooperation, the deficiencies in the data have led to an observation restriction of 11 countries. Due to the detection of the problem of cross-sectional dependence YKB between the series in the analysis, unit root control was provided by second generation unit root tests. The long-term cointegration relationship between the series that became stationary at their first difference was checked with the Westerlund cointegration test, which takes into account in YKB, and a long-term cointegration relationship was found between the series. Finally, the coefficients of the relationship between interest payments and economic growth were estimated with the Panel DOLS estimator, which is stable at I1 level and can give effective results in YKB situations. According to the results of the analysis, there is a long-term co-integration relationship between interest payments and economic growth, while a 1 increase in interest payments as a result of the panel DOLS estimator reduces growth by approximately 0.48.

 The search for an alternative model instead of the interest system, which is one of the most important economic issues for firm investments in the economic literature, is of great importance, especially in Islamic countries or countries with a predominantly Muslim population. Although interest is a difficult topic to give up in todays economic literature, studies in this field will increase the importance of alternative applications by revealing the negative results of interest in a scientific framework. The aim of this study is to reveal the relationship between interest payments and economic growth in Islamic countries. In addition, the study is the most up-to-date study among the few studies on interest and economic growth on Islamic countries. Since the analysis aimed to reveal the effect of interest payments, which is an item of transfer expenditures, on growth in a more meaningful way, consumption and investment expenditures were also included as control variables in the analysis. In the study, a panel data set covering the period of 1995-2020 for 11 Islamic countries was used. Although there are many more Islamic countries that are members of the Organization of Islamic Cooperation, the deficiencies in the data have led to an observation restriction of 11 countries. Due to the detection of the problem of cross-sectional dependence YKB between the series in the analysis, unit root control was provided by second generation unit root tests. The long-term cointegration relationship between the series that became stationary at their first difference was checked with the Westerlund cointegration test, which takes into account in YKB, and a long-term cointegration relationship was found between the series. Finally, the coefficients of the relationship between interest payments and economic growth were estimated with the Panel DOLS estimator, which is stable at I1 level and can give effective results in YKB situations. According to the results of the analysis, there is a long-term co-integration relationship between interest payments and economic growth, while a 1 increase in interest payments as a result of the panel DOLS estimator reduces growth by approximately 0.48.

 The search for an alternative model instead of the interest system, which is one of the most important economic issues for firm investments in the economic literature, is of great importance, especially in Islamic countries or countries with a predominantly Muslim population. Although interest is a difficult topic to give up in todays economic literature, studies in this field will increase the importance of alternative applications by revealing the negative results of interest in a scientific framework. The aim of this study is to reveal the relationship between interest payments and economic growth in Islamic countries. In addition, the study is the most up-to-date study among the few studies on interest and economic growth on Islamic countries. Since the analysis aimed to reveal the effect of interest payments, which is an item of transfer expenditures, on growth in a more meaningful way, consumption and investment expenditures were also included as control variables in the analysis. In the study, a panel data set covering the period of 1995-2020 for 11 Islamic countries was used. Although there are many more Islamic countries that are members of the Organization of Islamic Cooperation, the deficiencies in the data have led to an observation restriction of 11 countries. Due to the detection of the problem of cross-sectional dependence YKB between the series in the analysis, unit root control was provided by second generation unit root tests. The long-term cointegration relationship between the series that became stationary at their first difference was checked with the Westerlund cointegration test, which takes into account in YKB, and a long-term cointegration relationship was found between the series. Finally, the coefficients of the relationship between interest payments and economic growth were estimated with the Panel DOLS estimator, which is stable at I1 level and can give effective results in YKB situations. According to the results of the analysis, there is a long-term co-integration relationship between interest payments and economic growth, while a 1 increase in interest payments as a result of the panel DOLS estimator reduces growth by approximately 0.48.

 Ekonomi literatüründe firma yatırımları için en önemli iktisadi konulardan biri olan faiz sistemi yerine alternatif model arayışı, özellikle İslâm ülkeleri veya çoğunluğu Müslüman nüfusa sahip ülkelerde büyük önem arz etmektedir. Faiz, her ne kadar günümüz iktisat literatüründe vaz geçilmesi zor bir başlık olsa da bu alanda yapılan çalışmalar, faizin olumsuz sonuçlarını bilimsel çerçevede ortaya koyarak alternatif uygulamaların önemini artıracaktır. Bu çalışmanın amacı, İslâm ülkelerinde faiz ödemeleri ile ekonomik büyüme arasında ilişkiyi ortaya koymaktır. Ayrıca çalışma İslâm ülkeleri üzerinde faiz ve ekonomik büyümenin çalışıldığı az sayıda çalışma içerisinde en güncel çalışma niteliğini taşımaktadır. Analizde transfer harcamalarının bir kalemi olan faiz ödemelerinin büyüme üzerindeki etkisini daha anlamlı şekilde ortaya koymak amaçlandığından ayrıca tüketim ve yatırım harcamalarına da kontrol değişken olarak yer verilmiştir. Çalışmada aralarında Arnavutluk, Azerbaycan, Bahreyn, Mısır, Endonezya, İran, Ürdün, Kuveyt, Fas, Tunus ve Türkiye olan 11 İslâm ülkesine ilişkin 1995 2020 dönemini kapsayan panel veri seti kullanılmıştır. İslâm İş birliği Teşkilatına üye çok daha fazla İslâm ülkesi olmasına karşın verilerdeki eksiklikler 11 ülkelik bir gözlem kısıtına gidilmesine sebep olmuştur. Birinci farklarında durağan hale gelen serilerin arasında uzun dönemli eş bütünleşme ilişkisi YKByi de dikkate alan Westerlund eşbütünleşme testi ile kontrol edilmiş ve seriler arasında uzun dönemli eş bütünleşme ilişkisi bulunmuştur. Son olarak I1 seviyesinde durağan ve YKB durumlarında etkili sonuçlar verebilen Panel DOLS tahmincisi ile faiz ödemeleri ile ekonomik büyüme arasındaki ilişkinin katsayıları tahmin edilmiştir. Analiz sonuçlarına göre faiz ödemeleri ile ekonomik büyüme arasında uzun dönemli bir eş bütünleşme ilişkisi bulunurken panel DOLS tahmincisi sonucunda faiz ödemelerinde 1lik artış büyümeyi yaklaşık 0.48 oranında azaltmaktadır.

Makale detayları

Analysis of the Relationship between Interest Payments and Economic Growth with Panel Data Method: The Case of Islamic Countries

Yazarlar:

Abdulkadir Atar | Mehmet Akif Peçe

Yayıncı:

Mustafa Süleyman ÖZCAN

Ana Başlıklar:

İslam Ekonomisi

Dergi:

İnsan ve Toplum Bilimleri Araştırmaları Dergisi Vol.12 Issue 5, pp.2521-2536

Belge Tipi:

Makale

Yayın Tarihi:

12/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001303154

pISSN:

2147-1185

Interest Payments

Islamic Countries

Economic Growth

Second Generation Unit Root Tests

DOLS(Dynamic Ordinary Least Square)Faiz Ödemeleri

İslam Ülkeleri

Ekonomik Büyüme

İkinci Nesil Birim Kök Testleri

DOLS(Dynamic Ordinary Least Square)

Sayı

Makale detayları

Yazarlar: Abdulkadir Atar | Mehmet Akif Peçe

Yayıncı: Mustafa Süleyman ÖZCAN

Ana Başlıklar: İslam Ekonomisi

Dergi: İnsan ve Toplum Bilimleri Araştırmaları Dergisi Vol.12 Issue 5, pp.2521-2536

Belge Tipi: Makale

Yayın Tarihi: 12/2023

Belge Dili: Türkçe

Document ID (Org No.): 2001303154

pISSN: 2147-1185

Sayı

Yazarlar:

Abdulkadir Atar | Mehmet Akif Peçe

Yayıncı:

Mustafa Süleyman ÖZCAN

Ana Başlıklar:

İslam Ekonomisi

Dergi:

İnsan ve Toplum Bilimleri Araştırmaları Dergisi Vol.12 Issue 5, pp.2521-2536

Belge Tipi:

Makale

Yayın Tarihi:

12/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001303154

pISSN:

2147-1185