Financial liberalization in Turkey - Why was the impact on growth limited?

Ozatay F., Sak G.

EMERGING MARKETS FINANCE AND TRADE, cilt.38, sa.5, ss.6-22, 2002 (SSCI, Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 38 Sayı: 5
  • Basım Tarihi: 2002
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.6-22
  • Anahtar Kelimeler: financial intermediation, financial markets, uncertainty
  • Ankara Üniversitesi Adresli: Hayır

Özet

This study shows that the financial reform process, which started in 1980, considerably deepened the financial system. However the impact of this deepening on credit growth was extremely mild, if not insignificant. We further show that the growth of credit stock, not the deepening of the financial system as measured by the growth of total liabilities of the banking sector influences economic growth. The reform period can be identified by an increase in the level of riskiness. Without attempting to explain the reasons behind the environment of increased riskiness, we show that the ratio of credit to liabilities was adversely affected by this environment.