THE RELATIONSHIP BETWEEN BANK LOANS and ECONOMIC GROWTH in TURKEY: 1995-2010

Abstract

In this study, we aim to determine the direction of the relationship between the economic growth and total credits of Turkish Banks. In our study, we analyzed this relationship for the period 1995-2010, by using quarterly data analysis. In the analyses, change in the volume of real credits is used to represent the variable, total credits; and real growth in GDP represents the variable, growth. This study uses Unit Root Test and Todo-Yamamoto Causality Analysis as econometric methods. As a result of the analysis and evaluations, it is found that from the growth to the credits there has been a uni-directional causality relation.