The effect of bank loans on economic growth in turkey

This study it is aimed to test the relationship between private sector loans extended by banks\rand economic growth in Turkey. For this purpose, annual data for the period 1980-2019 were\rused. The Johansen cointegration test was used to test the existence of the long-term\rrelationship between private sector loans on growth, and the Toda Yamamoto causality test\rwas used to determine the existence and direction of the causality relationship. In the model\restablished in the study, real GDP represents economic growth, the share of loans extended\rby banks to the private sector in GDP as representing private sector loans, and the share of\rgross capital formation in GDP representing capital and the number of employed people (per\rmillion persons) representing labor force are included as control variables. According to the\rresults of the analysis made within the framework of this model, it has been determined that\rprivate sector loans and economic growth are cointegrated, and there is a two-way causality\rrelationship between them.