Causality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey

Etem ERGEÇ; Özer SELÇUK

Makale detayları

Causality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey

Yazarlar:

Etem ERGEÇ | Özer SELÇUK

Yayıncı:

Siirt University

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Equinox Journal of Economics Business and Political Studies 2020 Vol.7 Issue 2, pp.64-81

Belge Tipi:

Makale

Yayın Tarihi:

9/2020

Belge Dili:

İngilizce

Document ID (Org No.):

2000403756

eISSN:

2687-4695

Özet:

 

In Islamic finance, since money cannot be traded, the connection between the real economy and finance is expected to be much stronger compared to the conventional finance. In this paper, we analyse the interaction between Islamic banking and the real economy in Turkey in comparison with conventional banking. By using monthly data for the period 2010-2020 and employing Toda-Yamamoto approach, we investigate the causal relationships between six variables belonging to Islamic and conventional banking sector, and eight industrial production indexes. We find that the number of causal relationships between industrial production and Islamic banking are fewer compared to conventional banking and the directions of these relationships are mostly from the industry to banking. This means that the impact of the Islamic finance on Turkish industrial production is relatively limited, and the real economy has a strong influence on Islamic finance.Keywords: Islamic Banking, Conventional Banking, Industrial Production .

 

In Islamic finance, since money cannot be traded, the connection between the real economy and finance is expected to be much stronger compared to the conventional finance. In this paper, we analyse the interaction between Islamic banking and the real economy in Turkey in comparison with conventional banking. By using monthly data for the period 2010-2020 and employing Toda-Yamamoto approach, we investigate the causal relationships between six variables belonging to Islamic and conventional banking sector, and eight industrial production indexes. We find that the number of causal relationships between industrial production and Islamic banking are fewer compared to conventional banking and the directions of these relationships are mostly from the industry to banking. This means that the impact of the Islamic finance on Turkish industrial production is relatively limited, and the real economy has a strong influence on Islamic finance.Keywords: Islamic Banking, Conventional Banking, Industrial Production .

Makale detayları

Causality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey

Yazarlar: Etem ERGEÇ | Özer SELÇUK

Yayıncı: Siirt University

Ana Başlıklar: Ekonomi ve Maliye

Dergi: Equinox Journal of Economics Business and Political Studies 2020 Vol.7 Issue 2, pp.64-81

Belge Tipi: Makale

Yayın Tarihi: 9/2020

Belge Dili: İngilizce

Document ID (Org No.): 2000403756

eISSN: 2687-4695

Sayı

Yazarlar:

Etem ERGEÇ | Özer SELÇUK

Yayıncı:

Siirt University

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Equinox Journal of Economics Business and Political Studies 2020 Vol.7 Issue 2, pp.64-81

Belge Tipi:

Makale

Yayın Tarihi:

9/2020

Belge Dili:

İngilizce

Document ID (Org No.):

2000403756

eISSN:

2687-4695