Structural breaks, financial globalization, and financial development: Evidence from Turkey

Pinar Avci; Murat Cetin

doi:10.20885/ejem.vol14.iss2.art5

Submitted

January 14, 2022

Accepted

September 23, 2022

Published

October 5, 2022

Download

Full text PDF

Statistic

Read Counter : 499 Download : 758

Downloads

Abstract

Purpose ― Mishkin’s hypothesis suggests that globalization appears to be a vital factor in stimulating the development of the financial system. The study examines this hypothesis for the Turkish economy from 1970 to 2017. It focuses on the link between financial globalization and financial development by integrating economic growth, inflation, and natural resource rent as additional determinants into the financial development specification.

Methods ― The Ng-Perron and Vogelsang-Perron unit root tests are used to check the stationarity of variables. The cointegration analysis is performed using the Hatemi-J and ARDL bounds testing procedures.

Findings ― The main empirical results show that the series are cointegrated under structural breaks; in the long run, financial globalization and economic growth increase financial development while inflation and natural resource rent negatively affect financial development. A unidirectional causality exists from financial globalization and economic growth to financial development. At the same time, there is bidirectional causality between inflation and financial development, natural resource rent, and financial development.

Implications ― The empirical findings can present important recommendations for policymakers.

Originality ― Very few time-series studies include Turkey’s economy and structural breaks.

License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Author Biographies

Pinar Avci, School of Sarköy Vocational in Tekirdag Namik Kemal University, Tekirdag, Turkey

She is a lecturer at School of Sarköy Vocational in Tekirdag Namik Kemal University, Tekirdag, Turkey. She teaches capital market, firm value, financial management and accounting and finance. She received the B.S. degree in Business Trakya University, 2007, M.S. degree in Business, Trakya University, 2012, and PhD degree in Accounting-Finance, Gazi University, 2019. Her main research interests are financial market and institutions, capital market, firm value, financial management, financial economics and panel data.

Murat Cetin, Faculty of Economics and Administrative Sciences, Tekirdag Namik Kemal University, Tekirdag, Turkey

He is a Professor of Economic Development at Faculty of Economics and Administrative Sciences in Tekirdag Namik Kemal University, Tekirdag, Turkey. Prof. Cetin teaches economic growth and development, macroeconomics, monetary policy related courses. He received the B.S. degree in Economics Karadeniz Teknik University, 1994, M.S. degree in Economics, Karadeniz Teknik University, 1996, and PhD degree in Economics Karadeniz Teknik University, 2000. His main research areas focus on growth economics, financial economics, energy economics, time-series and panel data analyses.

How to Cite

Avci, P., & Cetin, M. (2022). Structural breaks, financial globalization, and financial development: Evidence from Turkey. Economic Journal of Emerging Markets, 14(2), 204–217. https://doi.org/10.20885/ejem.vol14.iss2.art5

Download Citation

References

Abu, N., & Staniewski, M. W. (2019). Determinants of corruption in Nigeria: Evidence from various estimation techniques. Economic Research-Ekonomska Istraživanja, 32(1), 3058–3082. https://doi.org/10.1080/1331677X.2019.1655467
Adams, S. (2008). Globalization and income inequality: Implications for intellectual property rights. Journal of Policy Modeling, 30(5), 725–735. https://doi.org/10.1016/j.jpolmod.2007.10.005
Ahmed, Z., Zhang, B., & Cary, M. (2021). Linking economic globalization, economic growth, financial development, and ecological footprint: Evidence from symmetric and asymmetric ARDL. Ecological Indicators, 121, 1–12. https://doi.org/10.1016/j.ecolind.2020.107060
Alkhathlan, K., & Javid, M. (2013). Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis. Energy Policy, 62, 1525–1532. https://doi.org/10.1016/j.enpol.2013.07.068
Asongu, S. (2014). Financial development dynamic thresholds of financial globalization. Journal of Economic Studies, 41(2), 166–195. https://doi.org/10.1108/JES-03-2012-0039
Asongu, S. A. (2017). Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa. Journal of Multinational Financial Management, 40, 103–114. https://doi.org/10.1016/j.mulfin.2017.05.003
Atil, A., Nawaz, K., Lahiani, A., & Roubaud, D. (2020). Are natural resources a blessing or a curse for financial development in Pakistan? The importance of oil prices, economic growth and economic globalization. Resources Policy, 67, 101683. https://doi.org/10.1016/j.resourpol.2020.101683
Avcı, P. (2020). Küreselleşme ve finansal küreselleşme: Küreselleşmenin finansal piyasalara etkisi. In M. Öztürk (Ed.), Finansal Dinamikler: Küreselleşme Sürecinde Finansal Gelişmeler ve Etkileri. Ankara: Nobel Akademik Yayıncılık.
Bai, J., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. https://doi.org/10.2307/2998540
Balcilar, M., Gungor, H., & Olasehinde-Williams, G. (2019). On the impact of globalization on financial development: A multi-country panel study. European Journal of Sustainable Development, 8(1), 350. https://doi.org/10.14207/ejsd.2019.v8n1p350
Bittencourt, M. (2011). Inflation and financial development: Evidence from Brazil. Economic Modelling, 28(1), 91–99. https://doi.org/10.1016/j.econmod.2010.09.021
Çevik, E. İ., Atukeren, E., & Korkmaz, T. (2019). Trade openness and economic growth in turkey: A rolling frequency domain analysis. Economies, 7(2), 1–16. https://doi.org/10.3390/economies7020041
Chen, L., Felipe, J., Kam, A. J. Y., & Mehta, A. (2021). Is employment globalizing? Structural Change and Economic Dynamics, 56, 74–92. https://doi.org/10.1016/j.strueco.2020.09.003
Chen, Z. M., & Chen, G. Q. (2011). An overview of energy consumption of the globalized world economy. Energy Policy, 39(10), 5920–5928. https://doi.org/10.1016/j.enpol.2011.06.046
Egger, H., & Fischer, C. (2020). Increasing resistance to globalization: The role of trade in tasks. European Economic Review, 126, 103446. https://doi.org/10.1016/j.euroecorev.2020.103446
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251–276. https://doi.org/10.2307/1913236
Faisal, F., Sulaiman, Y., & Tursoy, T. (2019). Does an asymmetric nexus exist between financial deepening and natural resources for emerging economy? Evidence from multiple break cointegration test. Resources Policy, 64, 101512. https://doi.org/10.1016/j.resourpol.2019.101512
García, E. D. T. (2012). Financial globalization and financial development in Transition countries. Economía: Teoría Práctica, 36, 155–178. https://doi.org/10.24275/ETYPUAM/NE/362012/Tovar
Ghosh, A. (2017). How does banking sector globalization affect economic growth? International Review of Economics & Finance, 48, 83–97. https://doi.org/10.1016/j.iref.2016.11.011
Gregory, A. W., & Hansen, B. E. (1996). Residual-based tests for cointegration in models with regime shifts. Journal of Econometrics, 70(1), 99–126. https://doi.org/10.1016/0304-4076(69)41685-7
Guan, J., Kirikkaleli, D., Bibi, A., & Zhang, W. (2020). Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth? Resources Policy, 66, 101641. https://doi.org/10.1016/j.resourpol.2020.101641
Gygli, S., Haelg, F., Potrafke, N., & Sturm, J.-E. (2019). The KOF Globalisation Index – revisited. The Review of International Organizations, 14(3), 543–574. https://doi.org/10.1007/s11558-019-09344-2
Hacker, R. S., & Hatemi-J, A. (2008). Tests for causality between integrated variables using asymptotic and bootstrap distributions: Theory and application. Applied Economics, 38(13), 1489–1500. https://doi.org/10.1080/00036840500405763
Harris, E. (1999). Impact of the Asian crisis on Sub-Saharan Africa. Finance and Development, 36(1), 14–17.
Haseeb, A., Xia, E., Danish, Baloch, M. A., & Abbas, K. (2018). Financial development, globalization, and CO2 emission in the presence of EKC: Evidence from BRICS countries. Environmental Science and Pollution Research, 25(31), 31283–31296. https://doi.org/10.1007/s11356-018-3034-7
Hatemi-J, A. (2008). Tests for cointegration with two unknown regime shifts with an application to financial market integration. Empirical Economics, 35(3), 497–505. https://doi.org/10.1007/s00181-007-0175-9
Häusler, G. (2002). The globalization of finance. Finance and Development, 39(1), 10–12.
Helhel, Y. (2017). Küreselleşme ve finansal gelişme arasindaki etkileşimin Türkiye ve BRICS ülkeleri için incelenmesi. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 9(20), 158–178. https://doi.org/10.20875/makusobed.293046
Law, S. H., Tan, H. B., & Azman-Saini, W. N. W. (2015). Globalisation, institutional reforms and financial development in East Asian economies. The World Economy, 38(2), 379–398. https://doi.org/10.1111/twec.12168
Li, J., Lu, Y., Song, H., & Xie, H. (2019). Long-term impact of trade liberalization on human capital formation. Journal of Comparative Economics, 47(4), 946–961. https://doi.org/10.1016/j.jce.2019.08.002
Mishkin, F. S. (2009). Globalization and financial development. Journal of Development Economics, 89(2), 164–169. https://doi.org/10.1016/j.jdeveco.2007.11.004
Muye, I. M., & Muye, I. Y. (2017). Testing for causality among globalization, institution and financial development: Further evidence from three economic blocs. Borsa Istanbul Review, 17(2), 117–132. https://doi.org/10.1016/j.bir.2016.10.001
Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103
Nasreen, S., Mahalik, M. K., Shahbaz, M., & Abbas, Q. (2020). How do financial globalization, institutions and economic growth impact financial sector development in European countries? Research in International Business and Finance, 54, 101247. https://doi.org/10.1016/j.ribaf.2020.101247
Ng, S., & Perron, P. (2001). LAG length selection and the construction of unit root tests with good size and power. Econometrica, 69(6), 1519–1554. https://doi.org/10.1111/1468-0262.00256
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
Phillips, P. C. B. (1987). Time series regression with a unit root. Econometrica, 55(2), 277–301. https://doi.org/10.2307/1913237
Phuc Canh, N., & Trung Thong, N. (2020). Nexus between financialisation and natural resources rents: Empirical evidence in a global sample. Resources Policy, 66, 101590. https://doi.org/10.1016/j.resourpol.2020.101590
Quixina, Y., & Almeida, A. (2014). Financial development and economic growth in a natural resource based economy: Evidence from Angola (FEP Working Papers No. 542).
Rajan, R. G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. https://doi.org/10.1016/S0304-405X(03)00125-9
Satti, S. L., Shahbaz, M., Mujahid, N., & Ali, A. (2013). Impact of financial development and globalization on inflation: The role of remittance and economic growth in Bangladesh (MPRA Paper No. 51675).
Saud, S., Chen, S., Haseeb, A., & Sumayya. (2020). The role of financial development and globalization in the environment: Accounting ecological footprint indicators for selected one-belt-one-road initiative countries. Journal of Cleaner Production, 250, 119518. https://doi.org/10.1016/j.jclepro.2019.119518
Sethi, P., Chakrabarti, D., & Bhattacharjee, S. (2020). Globalization, financial development and economic growth: Perils on the environmental sustainability of an emerging economy. Journal of Policy Modeling, 42(3), 520–535. https://doi.org/10.1016/j.jpolmod.2020.01.007
Shahbaz, M., Mallick, H., Mahalik, M. K., & Hammoudeh, S. (2018). Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies. Applied Economics, 50(6), 574–595. https://doi.org/10.1080/00036846.2017.1324615
Shahbaz, M., Naeem, M., Ahad, M., & Tahir, I. (2018). Is natural resource abundance a stimulus for financial development in the USA? Resources Policy, 55, 223–232. https://doi.org/10.1016/j.resourpol.2017.12.006
Song, C.-Q., Chang, C.-P., & Gong, Q. (2021). Economic growth, corruption, and financial development: Global evidence. Economic Modelling, 94, 822–830. https://doi.org/10.1016/j.econmod.2020.02.022
Stock, J., & Watson, M. (1999). A comparison of linear and nonlinear univariate models for forecasting macroeconomic time series. In R. Engle & H. White (Eds.), Cointegration, Causality and Forecasting: A Festschrift for Clive W.J. Granger (pp. 1–44). Oxford: Oxford University Press. Retrieved from http://www.economics.harvard.edu/faculty/stock/files/Granger_Festshrift_StockandWatson.pdf
Tornell, A., Westermann, F., & Martínez, L. (2004). The positive link between financial liberalization, growth and crises (NBER Working Paper No. 10293). Massachusetts.
U.S. Department of State. (2020). 2020 investment climate statements: Turkey. Ankara. Retrieved from https://www.state.gov/reports/2020-investment-climate-statements/turkey/
Uygur, E. (2010). The global crisis and the Turkish Economy (Turkish Economic Association Discussion Paper No. 2010/3).
World Bank. (2020). World Development Indicators (2020). Washington. Retrieved from https://databank.worldbank.org/source/world-development-indicators
Yang, F. (2019). The impact of financial development on economic growth in middle-income countries. Journal of International Financial Markets, Institutions and Money, 59, 74–89. https://doi.org/10.1016/j.intfin.2018.11.008
Zaidi, S. A. H., Wei, Z., Gedikli, A., Zafar, M. W., Hou, F., & Iftikhar, Y. (2019). The impact of globalization, natural resources abundance, and human capital on financial development: Evidence from thirty-one OECD countries. Resources Policy, 64, 101476. https://doi.org/10.1016/j.resourpol.2019.101476
Zaidi, S. A. H., Zafar, M. W., Shahbaz, M., & Hou, F. (2019). Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries. Journal of Cleaner Production, 228, 533–543. https://doi.org/10.1016/j.jclepro.2019.04.210

References

Abu, N., & Staniewski, M. W. (2019). Determinants of corruption in Nigeria: Evidence from various estimation techniques. Economic Research-Ekonomska Istraživanja, 32(1), 3058–3082. https://doi.org/10.1080/1331677X.2019.1655467

Adams, S. (2008). Globalization and income inequality: Implications for intellectual property rights. Journal of Policy Modeling, 30(5), 725–735. https://doi.org/10.1016/j.jpolmod.2007.10.005

Ahmed, Z., Zhang, B., & Cary, M. (2021). Linking economic globalization, economic growth, financial development, and ecological footprint: Evidence from symmetric and asymmetric ARDL. Ecological Indicators, 121, 1–12. https://doi.org/10.1016/j.ecolind.2020.107060

Alkhathlan, K., & Javid, M. (2013). Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis. Energy Policy, 62, 1525–1532. https://doi.org/10.1016/j.enpol.2013.07.068

Asongu, S. (2014). Financial development dynamic thresholds of financial globalization. Journal of Economic Studies, 41(2), 166–195. https://doi.org/10.1108/JES-03-2012-0039

Asongu, S. A. (2017). Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa. Journal of Multinational Financial Management, 40, 103–114. https://doi.org/10.1016/j.mulfin.2017.05.003

Atil, A., Nawaz, K., Lahiani, A., & Roubaud, D. (2020). Are natural resources a blessing or a curse for financial development in Pakistan? The importance of oil prices, economic growth and economic globalization. Resources Policy, 67, 101683. https://doi.org/10.1016/j.resourpol.2020.101683

Avcı, P. (2020). Küreselleşme ve finansal küreselleşme: Küreselleşmenin finansal piyasalara etkisi. In M. Öztürk (Ed.), Finansal Dinamikler: Küreselleşme Sürecinde Finansal Gelişmeler ve Etkileri. Ankara: Nobel Akademik Yayıncılık.

Bai, J., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. https://doi.org/10.2307/2998540

Balcilar, M., Gungor, H., & Olasehinde-Williams, G. (2019). On the impact of globalization on financial development: A multi-country panel study. European Journal of Sustainable Development, 8(1), 350. https://doi.org/10.14207/ejsd.2019.v8n1p350

Bittencourt, M. (2011). Inflation and financial development: Evidence from Brazil. Economic Modelling, 28(1), 91–99. https://doi.org/10.1016/j.econmod.2010.09.021

Çevik, E. İ., Atukeren, E., & Korkmaz, T. (2019). Trade openness and economic growth in turkey: A rolling frequency domain analysis. Economies, 7(2), 1–16. https://doi.org/10.3390/economies7020041

Chen, L., Felipe, J., Kam, A. J. Y., & Mehta, A. (2021). Is employment globalizing? Structural Change and Economic Dynamics, 56, 74–92. https://doi.org/10.1016/j.strueco.2020.09.003

Chen, Z. M., & Chen, G. Q. (2011). An overview of energy consumption of the globalized world economy. Energy Policy, 39(10), 5920–5928. https://doi.org/10.1016/j.enpol.2011.06.046

Egger, H., & Fischer, C. (2020). Increasing resistance to globalization: The role of trade in tasks. European Economic Review, 126, 103446. https://doi.org/10.1016/j.euroecorev.2020.103446

Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251–276. https://doi.org/10.2307/1913236

Faisal, F., Sulaiman, Y., & Tursoy, T. (2019). Does an asymmetric nexus exist between financial deepening and natural resources for emerging economy? Evidence from multiple break cointegration test. Resources Policy, 64, 101512. https://doi.org/10.1016/j.resourpol.2019.101512

García, E. D. T. (2012). Financial globalization and financial development in Transition countries. Economía: Teoría Práctica, 36, 155–178. https://doi.org/10.24275/ETYPUAM/NE/362012/Tovar

Ghosh, A. (2017). How does banking sector globalization affect economic growth? International Review of Economics & Finance, 48, 83–97. https://doi.org/10.1016/j.iref.2016.11.011

Gregory, A. W., & Hansen, B. E. (1996). Residual-based tests for cointegration in models with regime shifts. Journal of Econometrics, 70(1), 99–126. https://doi.org/10.1016/0304-4076(69)41685-7

Guan, J., Kirikkaleli, D., Bibi, A., & Zhang, W. (2020). Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth? Resources Policy, 66, 101641. https://doi.org/10.1016/j.resourpol.2020.101641

Gygli, S., Haelg, F., Potrafke, N., & Sturm, J.-E. (2019). The KOF Globalisation Index – revisited. The Review of International Organizations, 14(3), 543–574. https://doi.org/10.1007/s11558-019-09344-2

Hacker, R. S., & Hatemi-J, A. (2008). Tests for causality between integrated variables using asymptotic and bootstrap distributions: Theory and application. Applied Economics, 38(13), 1489–1500. https://doi.org/10.1080/00036840500405763

Harris, E. (1999). Impact of the Asian crisis on Sub-Saharan Africa. Finance and Development, 36(1), 14–17.

Haseeb, A., Xia, E., Danish, Baloch, M. A., & Abbas, K. (2018). Financial development, globalization, and CO2 emission in the presence of EKC: Evidence from BRICS countries. Environmental Science and Pollution Research, 25(31), 31283–31296. https://doi.org/10.1007/s11356-018-3034-7

Hatemi-J, A. (2008). Tests for cointegration with two unknown regime shifts with an application to financial market integration. Empirical Economics, 35(3), 497–505. https://doi.org/10.1007/s00181-007-0175-9

Häusler, G. (2002). The globalization of finance. Finance and Development, 39(1), 10–12.

Helhel, Y. (2017). Küreselleşme ve finansal gelişme arasindaki etkileşimin Türkiye ve BRICS ülkeleri için incelenmesi. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 9(20), 158–178. https://doi.org/10.20875/makusobed.293046

Law, S. H., Tan, H. B., & Azman-Saini, W. N. W. (2015). Globalisation, institutional reforms and financial development in East Asian economies. The World Economy, 38(2), 379–398. https://doi.org/10.1111/twec.12168

Li, J., Lu, Y., Song, H., & Xie, H. (2019). Long-term impact of trade liberalization on human capital formation. Journal of Comparative Economics, 47(4), 946–961. https://doi.org/10.1016/j.jce.2019.08.002

Mishkin, F. S. (2009). Globalization and financial development. Journal of Development Economics, 89(2), 164–169. https://doi.org/10.1016/j.jdeveco.2007.11.004

Muye, I. M., & Muye, I. Y. (2017). Testing for causality among globalization, institution and financial development: Further evidence from three economic blocs. Borsa Istanbul Review, 17(2), 117–132. https://doi.org/10.1016/j.bir.2016.10.001

Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103

Nasreen, S., Mahalik, M. K., Shahbaz, M., & Abbas, Q. (2020). How do financial globalization, institutions and economic growth impact financial sector development in European countries? Research in International Business and Finance, 54, 101247. https://doi.org/10.1016/j.ribaf.2020.101247

Ng, S., & Perron, P. (2001). LAG length selection and the construction of unit root tests with good size and power. Econometrica, 69(6), 1519–1554. https://doi.org/10.1111/1468-0262.00256

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616

Phillips, P. C. B. (1987). Time series regression with a unit root. Econometrica, 55(2), 277–301. https://doi.org/10.2307/1913237

Phuc Canh, N., & Trung Thong, N. (2020). Nexus between financialisation and natural resources rents: Empirical evidence in a global sample. Resources Policy, 66, 101590. https://doi.org/10.1016/j.resourpol.2020.101590

Quixina, Y., & Almeida, A. (2014). Financial development and economic growth in a natural resource based economy: Evidence from Angola (FEP Working Papers No. 542).

Rajan, R. G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. https://doi.org/10.1016/S0304-405X(03)00125-9

Satti, S. L., Shahbaz, M., Mujahid, N., & Ali, A. (2013). Impact of financial development and globalization on inflation: The role of remittance and economic growth in Bangladesh (MPRA Paper No. 51675).

Saud, S., Chen, S., Haseeb, A., & Sumayya. (2020). The role of financial development and globalization in the environment: Accounting ecological footprint indicators for selected one-belt-one-road initiative countries. Journal of Cleaner Production, 250, 119518. https://doi.org/10.1016/j.jclepro.2019.119518

Sethi, P., Chakrabarti, D., & Bhattacharjee, S. (2020). Globalization, financial development and economic growth: Perils on the environmental sustainability of an emerging economy. Journal of Policy Modeling, 42(3), 520–535. https://doi.org/10.1016/j.jpolmod.2020.01.007

Shahbaz, M., Mallick, H., Mahalik, M. K., & Hammoudeh, S. (2018). Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies. Applied Economics, 50(6), 574–595. https://doi.org/10.1080/00036846.2017.1324615

Shahbaz, M., Naeem, M., Ahad, M., & Tahir, I. (2018). Is natural resource abundance a stimulus for financial development in the USA? Resources Policy, 55, 223–232. https://doi.org/10.1016/j.resourpol.2017.12.006

Song, C.-Q., Chang, C.-P., & Gong, Q. (2021). Economic growth, corruption, and financial development: Global evidence. Economic Modelling, 94, 822–830. https://doi.org/10.1016/j.econmod.2020.02.022

Stock, J., & Watson, M. (1999). A comparison of linear and nonlinear univariate models for forecasting macroeconomic time series. In R. Engle & H. White (Eds.), Cointegration, Causality and Forecasting: A Festschrift for Clive W.J. Granger (pp. 1–44). Oxford: Oxford University Press. Retrieved from http://www.economics.harvard.edu/faculty/stock/files/Granger_Festshrift_StockandWatson.pdf

Tornell, A., Westermann, F., & Martínez, L. (2004). The positive link between financial liberalization, growth and crises (NBER Working Paper No. 10293). Massachusetts.

U.S. Department of State. (2020). 2020 investment climate statements: Turkey. Ankara. Retrieved from https://www.state.gov/reports/2020-investment-climate-statements/turkey/

Uygur, E. (2010). The global crisis and the Turkish Economy (Turkish Economic Association Discussion Paper No. 2010/3).

World Bank. (2020). World Development Indicators (2020). Washington. Retrieved from https://databank.worldbank.org/source/world-development-indicators

Yang, F. (2019). The impact of financial development on economic growth in middle-income countries. Journal of International Financial Markets, Institutions and Money, 59, 74–89. https://doi.org/10.1016/j.intfin.2018.11.008

Zaidi, S. A. H., Wei, Z., Gedikli, A., Zafar, M. W., Hou, F., & Iftikhar, Y. (2019). The impact of globalization, natural resources abundance, and human capital on financial development: Evidence from thirty-one OECD countries. Resources Policy, 64, 101476. https://doi.org/10.1016/j.resourpol.2019.101476

Zaidi, S. A. H., Zafar, M. W., Shahbaz, M., & Hou, F. (2019). Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries. Journal of Cleaner Production, 228, 533–543. https://doi.org/10.1016/j.jclepro.2019.04.210

Structural breaks, financial globalization, and financial development: Evidence from Turkey

Article Sidebar

Downloads

Main Article Content

Abstract

Article Details

Pinar Avci, School of Sarköy Vocational in Tekirdag Namik Kemal University, Tekirdag, Turkey

Murat Cetin, Faculty of Economics and Administrative Sciences, Tekirdag Namik Kemal University, Tekirdag, Turkey

References

References