TÜRKİYE’DE İSLAMİ BANKACILIK SİSTEMİ İLE EKONOMİK BÜYÜME ARASINDAKİ İLİŞKİNİN AMPİRİK BİR ANALİZİ
AN EMPIRICAL ANALYSIS OF THE RELATIONSHIP BETWEEN ISLAMIC BANKING SYSTEM AND ECONOMIC GROWTH IN TURKEY

Summary/Abstract: In recent years, with the expansion of the financial system in Turkey, Islamic banks (participation banks) have come to the fore as key economic actors. A review of studies on the impact of these banks on economic growth reveals that the research is quite limited compared to empirical studies on conventional financial institutions. These gaps in the existing literature make it very difficult to comprehensively understand the contribution of Islamic banks to the Turkish economy. This study aims to address these gaps by empirically analysing the sustainable impact of Islamic banks on economic growth. The study is based on econometric analyses using quarterly time series data from 2005Q4 to 2022Q1. The stationarity of the series is assessed using various unit root tests and the long-run cointegration analysis is performed using the ARDL bounds test method. In addition, Toda-Yamamoto causality test is applied to determine the causal link between the variables considered. In the study, GDP is chosen as the dependent variable to represent economic growth. The independent variables include funds disbursed by Islamic banks (loans), funds collected and total assets. Gross fixed capital formation, which represents fixed capital investments, is used as a control variable. The results of the ARDL Frontier Test indicate that funds collected and gross fixed capital formation have a significantly positive and significant effect on economic growth, whereas the effects of funds lent and total assets on economic growth are negative and significant. The Toda-Yamamoto causality test reveals that there is a unilateral causality link between funds disbursed and funds collected on GDP, whereas there is a bidirectional causality link between total assets and gross fixed capital formation and GDP. These results clearly demonstrate the importance of understanding the impact of Islamic banking on economic growth, especially in terms of fund allocation, sector selection and current economic conditions.

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