Financial Development and Economic Growth Nexus In Turkey: Casuality Analysis Based On Bootsrap Approach

In this study, causality analysis were carried out to specify the relationship between financial development and economic growth using annual data for 1986-2016 period for Turkey. It was followed Leveraged Bootstrap Approach Procedure by Hacker and Hatemi-J (2006) to test causality. Findings obtained from causality analysis generally refer to one-way causality towards economic growth from financial development. General results obtained from our study support evidence on supply-leading hypothesis. Consequently, practices towards financial development contribute positively to economic development. Therefore, these practices should be improved in carefull and in a controlled manner