The Turkish economy and financing growth by dual banking: Empirical evidence

Abstract

The progress in the industrial revolution in the fields of science and technology led to production methods by attracting investments in the production factors. The change contributed to efficiency of the sectors and to the emergence of sustainable growth. Having resources that will finance new investments offers contribution to the national economy. The conventional model dominates the financial sector in most nations in the world, whereas some nations adopt the IF as an alternative. The presence of the two at the same time is called dual banking system. This study analyses the dynamics of the Turkish economy from a historical perspective, followed by an empirical evaluation of the impact of the CF and the IF in the growth rates with reference to selected real sectors.