FINANCIAL DEVELOPMENT AND HUMAN CAPITAL IN TURKEY: ARDL APPROACH

Elma SATROVİC

Makale detayları

FINANCIAL DEVELOPMENT AND HUMAN CAPITAL IN TURKEY: ARDL APPROACH

Yazarlar:

Elma SATROVİC

Yayıncı:

Nevsehir Haci Bektas Veli University

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Cappadocia Academic Review 2017 Vol.1 Issue 2, pp.1-15

Belge Tipi:

Makale

Yayın Tarihi:

12/2017

Belge Dili:

Türkçe

Document ID (Org No.):

2000507823

Sıklık:

Yıllık

eISSN:

2602-3474

pISSN:

2602-3474

Özet:

 


The impact of human capital on financial development
has not been studied quite extensively in up-to-date studies. Hence, this
article tries to fill in this gap by exploring the impact of human capital on
financial development in Turkey. Human capital is expected to have a positive
impact on financial development since it reduces information asymmetry. In
addition, it is expected to increase demand for financial services and
instruments. This article investigates the long-run and short-run relationship
between financial development and human capital in Turkey using ARDL approach.
Data are collected over 30-years period (1986-2015). In order to estimate the
relationship between these economic terms, financial development is approximated
using two proxy variables: broad money (% of GDP) and liquid liabilities (% of
GDP). Two proxy variables of financial development are used in order to check
for the sensitivity of the results. In addition, the impact of gross capital
formation (% of GDP) is controlled. The obtained results indicate a significant
positive impact of human capital on broad money (% of GDP) as well as on liquid
liabilities (% of GDP) in both, short- and long-run. Control variable is not
reported to be significant. Pesaran/Shin/Smith ARDL bounds test confirms the
existence of a long-run relationship.


.

 


The impact of human capital on financial development
has not been studied quite extensively in up-to-date studies. Hence, this
article tries to fill in this gap by exploring the impact of human capital on
financial development in Turkey. Human capital is expected to have a positive
impact on financial development since it reduces information asymmetry. In
addition, it is expected to increase demand for financial services and instruments.
This article investigates the long-run and short-run relationship between
financial development and human capital in Turkey using ARDL approach. Data are
collected over 30-years period (1986-2015). In order to estimate the
relationship between these economic terms, financial development is
approximated using two proxy variables: broad money (% of GDP) and liquid
liabilities (% of GDP). Two proxy variables of financial development are used
in order to check for the sensitivity of the results. In addition, the impact
of gross capital formation (% of GDP) is controlled. The obtained results
indicate a significant positive impact of human capital on broad money (% of
GDP) as well as on liquid liabilities (% of GDP) in both, short- and long-run.
Control variable is not reported to be significant. Pesaran/Shin/Smith ARDL
bounds test confirms the existence of a long-run relationship.


.

Makale detayları

FINANCIAL DEVELOPMENT AND HUMAN CAPITAL IN TURKEY: ARDL APPROACH

Yazarlar: Elma SATROVİC

Yayıncı: Nevsehir Haci Bektas Veli University

Ana Başlıklar: Ekonomi ve Maliye

Dergi: Cappadocia Academic Review 2017 Vol.1 Issue 2, pp.1-15

Belge Tipi: Makale

Yayın Tarihi: 12/2017

Belge Dili: Türkçe

Document ID (Org No.): 2000507823

Sıklık: Yıllık

eISSN: 2602-3474

pISSN: 2602-3474

Sayı

Yazarlar:

Elma SATROVİC

Yayıncı:

Nevsehir Haci Bektas Veli University

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Cappadocia Academic Review 2017 Vol.1 Issue 2, pp.1-15

Belge Tipi:

Makale

Yayın Tarihi:

12/2017

Belge Dili:

Türkçe

Document ID (Org No.):

2000507823

Sıklık:

Yıllık

eISSN:

2602-3474

pISSN:

2602-3474