1,566
Views
14
CrossRef citations to date
0
Altmetric
Articles

Financial development and firm growth in Turkish manufacturing industry: evidence from heterogeneous panel based non-causality test

& ORCID Icon
Pages 1758-1769 | Received 17 Nov 2016, Accepted 16 Aug 2017, Published online: 15 Oct 2017

References

  • Arellano, C., Bai, Y., & Zhang, J. (2012). Firm dynamics and financial development. Journal of Monetary Economics, 59, 533–549. 10.1016/j.jmoneco.2012.06.006
  • Arestis, P., & Demetriades, P. O. (1997). Financial development and economic growth: Assessing the evidence. Economic Journal, 107, 783–799. 10.1111/ecoj.1997.107.issue-442
  • Bai, J., & Kao, C. (2006). On the estimation and inference of a panel cointegration model with cross-sectional dependence. In B. Baltagi (Ed.), Contributions to economic analysis (pp. 3–30). Amsterdam: Elsevier.
  • Beck, T., Levine, R., & Loayza, N. (2000). Finance and the sources of growth. Journal of Financial Economics, 58, 261–300. 10.1016/S0304-405X(00)00072-6
  • Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2003). Financial and legal institutions and firm size World Bank Policy Research Working Paper, No. 2997.
  • Beck, T., Demirgüç-Kunt, A., & Maksımovıc, V. (2005). Financial and legal constraint to growth: Does size matter? Journal of Finance, 60(2), 137–177. 10.1111/j.1540-6261.2005.00727.x
  • Blum D., Federmair K., Fink G., Haiss P. (2002), The financial-real sector nexus: Theory and empirical evidence IEF Working Paper, No. 43.
  • Borsa Istanbul Database. (n.d.). Retrieved from www.borsaistanbul.com
  • Breusch, T., & Pagan, A. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239–253. 10.2307/2297111
  • Çoban, S., & Topcu, M. (2013). The nexus between financial development and energy consumption in the EU: A dynamic panel data analysis. Energy Economics, 39, 81–88. 10.1016/j.eneco.2013.04.001
  • Delmar, F. (1997). Measuring growth: Methodological considerations and empirical results. In R. Donckels & A. Miettinen (Eds.), Entrepreneurship and SME research: On its way to the next millennium (pp. 190–216). Aldershot, UK and Brookfield, VA: Ashgate.
  • Demetriades, P., & Hussein, K. (1996). Financial development and economic growth: Cointegration and causality tests for 16 countries. Journal of Development Economics, 51, 387–411. 10.1016/S0304-3878(96)00421-X
  • Demirgüç-Kunt, A., & Maksimovic, V. (1998). Law, finance, and firm growth. The Journal of Finance, 53(6), 2107–2137. 10.1111/0022-1082.00084
  • Demirgüç-Kunt, A., & Maksimovic V. (2000) Funding growth in bank-based and market-based financial systems World Bank Working Paper, No. 2432.
  • Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger noncausality in heterogeneous panels. Economic Modelling, 29(4), 1450–1460. 10.1016/j.econmod.2012.02.014
  • Fisman, R., & Love, I. (2002). Patterns of industrial development revisited: The role of finance World Bank Policy Research Working Paper, No. 2877.
  • Fritz, R. G. (1984). Time series evidence of the causal relationship between financial deepening and economic development. Journal of Economic Development, 9, 91–111.
  • Gagliardi, F. (2009). Financial development and the growth of cooperative firms. Small Business Economics, 32, 439–464.
  • Gallego F., & Loayza, N. (2000). Financial structure in Chile: Macroeconomic developments and microeconomic effects Working Papers Central Bank of Chile, No. 75.
  • Goldsmith, R. W. (1969). Financial structure and development. New Haven, CT: Yale University Press, 1969.
  • Greenwood, J., & Smith, B. (1997). Financial markets in development and the development of financial markets”. Journal of Economic Dynamics and Control, 21, 145–181. 10.1016/0165-1889(95)00928-0
  • Guiso, L., Sapienza, P., & Zingales, L. (2004). Does local financial development matter? The Quarterly Journal of Economics, 119(3), 929–969. 10.1162/0033553041502162
  • Gupta, K. L. (1984). Finance and economic growth in developing countries. London: Croom Helm.
  • Gurley, J., & Shaw, E. (1967). Financial structure and economic development. Economic Development and Cultural Change, 15, 257–268. 10.1086/450226
  • Hansson, P., & Jonung, L. (1997). Finance and economic growth: The case of Sweden. Research in Economics, 51, 251–301.
  • Harrison, P., Sussman, O., & Zeira, J. (1999). Finance and growth: Theory and new evidence Finance and Economics Discussion Paper, No. 1999-35, Federal Reserve Board.
  • Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53–74. 10.1016/S0304-4076(03)00092-7
  • Jung, W. S. (1986). Financial development and economic growth: International evidence. Economic Development and Cultural Change, 34, 336–346.
  • Kakilli-Acaravci, S., Ozturk, I., & Acaravci, A. (2009). Financial development and economic growth: Literature survey and empirical evidence from Sub-Saharan African Countries. South African Journal of Economic and Management Sciences, 12(1), 11–27.
  • Khalifa Al-Yousif, Y. K. (2002). Financial development and economic growth: Another look at the evidence from developing countries. Review of Financial Economics, 11, 131–150.
  • King, R. G., & Levine, R. (1993a). Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 108, 717–737. 10.2307/2118406
  • King, R. G., & Levine, R. (1993b). Finance, entrepreneurship, and growth: Theory and evidence. Journal of Monetary Economics, 32, 513–542.
  • Levin, A., Lin, C. F., & Chu, J. (2002). Unit root tests in panel data: Asymptotic and finite sample properties. Journal of Econometrics, 108(1), 1–24. 10.1016/S0304-4076(01)00098-7
  • Levine, R. (2004). Finance and growth: Theory and evidence, National Bureau of Economic Research Working Papers, No. 10766.
  • Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics, 46(1), 31–77. 10.1016/S0304-3932(00)00017-9
  • Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3–42. 10.1016/0304-3932(88)90168-7
  • McKinnon, R. I. (1973). Money and capital in economic development. Washington, DC: Brookings Institution.
  • Morón, E., Salgado, E., & Seminario, C. (2013). Regional financial development and firm growth in Peru IDB (Inter-American Development Bank) Workıng Paper, No. IDB-WP-398.
  • Neusser, K., & Kugler, M. (1998). Manufacturing growth and financial development: Evidence from OECD countries. Review of Economics and Statistics, 80(4), 638–646. 10.1162/003465398557726
  • Ng, S. (2006). Testing cross-section correlation in panel data using spacings. Journal of Business and Economic Statistics, 24, 12–23. 10.1198/073500105000000171
  • Odhiambo, N. (2007). Supply-leading versus demand-following hypothesis: Empirical evidence from three SSA countries. African Development Review, 19(2), 257–280. 10.1111/afdr.2007.19.issue-2
  • Patrick, H. T. (1966). Financial development and economic growth in underdeveloped countries. Economic Development and Cultural Change, 14, 174–189. 10.1086/450153
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels. Unpublished manuscript, Faculty of Economics and Politics, University of Cambridge.
  • Pesaran, M. H. (2006). Estimation and ınference in large heterogeneous panels with a multifactor error structure. Econometrica, 74, 967–1012. 10.1111/ecta.2006.74.issue-4
  • Rajan, R. G., & Zingales, L. (1998). Financial dependence and growth. American Economic Review, 88, 559–586.
  • Robinson, J. (1952). The rate of ınterest and other essays. London: MacMillan.
  • Rousseau, P. L., & Wachtel, P. (1998). Financial intermediation and economic performance: Historical evidence from five industrialized economies. Journal of Money, Credit and Banking, 30, 657–678. 10.2307/2601123
  • Sarafidis, V., & Wansbeek, T. (2012). Cross-sectional dependence in panel data analysis. Econometric Reviews, 31, 483–531. 10.1080/07474938.2011.611458
  • Schumpeter, J. A. (1911). A theory of economic development. Cambridge, MA: Harvard University Press.
  • Shan, J., Morris, A., & Sun, F. (2001). Financial development and economic growth: An egg-and-chicken problem. Review of International Economics, 9(3), 443–454. 10.1111/roie.2001.9.issue-3
  • Shaw, E. S. (1973). Financial deepening in economic development. New York, NY: Oxford University Press.
  • Stern, N. (1989). The economics of development: A survey. Economic Journal, 99, 597–685. 10.2307/2233764
  • Thornton, J. (1996). Financial deepening and economic growth in developing economies. Applied Economics Letters, 3(4), 243–246. 10.1080/758520872
  • Topcu, M., & Altay, B. (2017). New insight into the finance-energy nexus: Disaggregated evidence from Turkish sectors. International Journal of Financial Studies, 5(1), 1–16.
  • Topcu, M., & Payne, J. E. (2017). The financial development-energy consumption nexus revisited. Energy Sources, Part B: Economics, Planning, and Policy, 12(9), 822–830.
  • Wood, A. (1993). Financial development and economic growth in Barbados: Causal evidence. Savings and Development, 17(4), 379–390.
  • World Bank Financial Structure Database. (2012). Retrieved from https://econ.worldbank.org/