Causality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey

dc.contributor.authorErgeç, Etem
dc.contributor.authorSelçuk, Özer
dc.date.accessioned2025-05-10T11:33:04Z
dc.date.issued2020
dc.departmentİstanbul Medeniyet Üniversitesi
dc.description.abstractIn Islamic finance, since money cannot be traded, the connection between the real economy and finance is expected to be much stronger compared to the conventional finance. In this paper, we analyse the interaction between Islamic banking and the real economy in Turkey in comparison with conventional banking. By using monthly data for the period 2010-2020 and employing Toda-Yamamoto approach, we investigate the causal relationships between six variables belonging to Islamic and conventional banking sector, and eight industrial production indexes. We find that the number of causal relationships between industrial production and Islamic banking are fewer compared to conventional banking and the directions of these relationships are mostly from the industry to banking. This means that the impact of the Islamic finance on Turkish industrial production is relatively limited, and the real economy has a strong influence on Islamic finance.Keywords: Islamic Banking, Conventional Banking, Industrial Production 
dc.description.abstractIn Islamic finance, since money cannot be traded, the connection between the real economy and finance is expected to be much stronger compared to the conventional finance. In this paper, we analyse the interaction between Islamic banking and the real economy in Turkey in comparison with conventional banking. By using monthly data for the period 2010-2020 and employing Toda-Yamamoto approach, we investigate the causal relationships between six variables belonging to Islamic and conventional banking sector, and eight industrial production indexes. We find that the number of causal relationships between industrial production and Islamic banking are fewer compared to conventional banking and the directions of these relationships are mostly from the industry to banking. This means that the impact of the Islamic finance on Turkish industrial production is relatively limited, and the real economy has a strong influence on Islamic finance.Keywords: Islamic Banking, Conventional Banking, Industrial Production 
dc.identifier.endpage81
dc.identifier.issn2687-4695
dc.identifier.issue2
dc.identifier.startpage64
dc.identifier.urihttps://dergipark.org.tr/tr/pub/equinox/issue/56841/789454
dc.identifier.urihttps://hdl.handle.net/20.500.14730/2832
dc.identifier.volume7
dc.language.isoen
dc.publisherSiirt University
dc.relation.ispartofEkinoks Ekonomi İşletme ve Siyasal Çalışmalar Dergisi
dc.relation.publicationcategoryMakale - Ulusal Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.snmzKA_DergiPark_20250302
dc.subjectislamic banking.
dc.subjectconventional banking
dc.subjectindustrial production
dc.subjectIslamic Banking
dc.subjectConventional Banking
dc.subjectIndustrial Production
dc.titleCausality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey
dc.titleCausality Relationship Between Banking & Industrial Production: Comparing Islamic & Conventional Banking in Turkey
dc.typeArticle

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