The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis
In this study, monthly frequency data covering the period between 2014:01 and 2022:10 were used to examine the relationship between domestic credit volume and unemployment rate in the Turkish economy. For this purpose, Vector Autoregressive Model (VAR) was used for the analysis and impact-response f...
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| Language: | English |
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Selcuk University Press
2023-11-01
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| Series: | Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/3229012 |
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| _version_ | 1846145729068793856 |
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| author | Onur Şeyranlıoğlu Çağlar Sözen Ferhat İspiroğlu |
| author_facet | Onur Şeyranlıoğlu Çağlar Sözen Ferhat İspiroğlu |
| author_sort | Onur Şeyranlıoğlu |
| collection | DOAJ |
| description | In this study, monthly frequency data covering the period between 2014:01 and 2022:10 were used to examine the relationship between domestic credit volume and unemployment rate in the Turkish economy. For this purpose, Vector Autoregressive Model (VAR) was used for the analysis and impact-response function and variance decomposition analyses were performed to interpret the coefficients obtained. According to the impact-response function results, shocks originating from both variables had a negative effect for a certain period and then created a positive effect before damping out. In addition, according to the variance decomposition results, approximately 85.2% of the change in domestic credit volume was explained by itself after 15 months, while approximately 14.79% was explained by the unemployment rate. Similarly, after 15 months, approximately 92.54% of the changes in the unemployment rate were explained by itself, while 7.45% was explained by domestic credit volume. Overall, it was determined that the effects of each variable on the total variability of the other variable lasted for 9 and 6 months, respectively. Finally, the Granger causality test was applied to reveal the causal relationships between domestic credit volume and unemployment rate. According to the test results, it was determined that the unemployment rate is the Granger cause of domestic credit volume. Therefore, it can be said that changes in the unemployment rate create changes in domestic credit volume. |
| format | Article |
| id | doaj-art-1ac9014b07d545218c68f5c98e2d8ac5 |
| institution | Kabale University |
| issn | 2564-7458 |
| language | English |
| publishDate | 2023-11-01 |
| publisher | Selcuk University Press |
| record_format | Article |
| series | Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi |
| spelling | doaj-art-1ac9014b07d545218c68f5c98e2d8ac52024-12-02T05:11:28ZengSelcuk University PressSelçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi2564-74582023-11-0126248149010.29249/selcuksbmyd.1319000154The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical AnalysisOnur Şeyranlıoğlu0Çağlar Sözen1Ferhat İspiroğlu2GİRESUN ÜNİVERSİTESİGİRESUN ÜNİVERSİTESİGİRESUN ÜNİVERSİTESİ, GÖRELE UYGULAMALI BİLİMLER YÜKSEKOKULUIn this study, monthly frequency data covering the period between 2014:01 and 2022:10 were used to examine the relationship between domestic credit volume and unemployment rate in the Turkish economy. For this purpose, Vector Autoregressive Model (VAR) was used for the analysis and impact-response function and variance decomposition analyses were performed to interpret the coefficients obtained. According to the impact-response function results, shocks originating from both variables had a negative effect for a certain period and then created a positive effect before damping out. In addition, according to the variance decomposition results, approximately 85.2% of the change in domestic credit volume was explained by itself after 15 months, while approximately 14.79% was explained by the unemployment rate. Similarly, after 15 months, approximately 92.54% of the changes in the unemployment rate were explained by itself, while 7.45% was explained by domestic credit volume. Overall, it was determined that the effects of each variable on the total variability of the other variable lasted for 9 and 6 months, respectively. Finally, the Granger causality test was applied to reveal the causal relationships between domestic credit volume and unemployment rate. According to the test results, it was determined that the unemployment rate is the Granger cause of domestic credit volume. Therefore, it can be said that changes in the unemployment rate create changes in domestic credit volume.https://dergipark.org.tr/tr/download/article-file/3229012credit volumeturkish economyunemployment ratei̇şsizlik oranıkredi hacmitürkiye ekonomisi |
| spellingShingle | Onur Şeyranlıoğlu Çağlar Sözen Ferhat İspiroğlu The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi credit volume turkish economy unemployment rate i̇şsizlik oranı kredi hacmi türkiye ekonomisi |
| title | The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis |
| title_full | The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis |
| title_fullStr | The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis |
| title_full_unstemmed | The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis |
| title_short | The Relationship Between Domestic Credit Volume and Unemployment Rate In The Turkish Economy: An Empirical Analysis |
| title_sort | relationship between domestic credit volume and unemployment rate in the turkish economy an empirical analysis |
| topic | credit volume turkish economy unemployment rate i̇şsizlik oranı kredi hacmi türkiye ekonomisi |
| url | https://dergipark.org.tr/tr/download/article-file/3229012 |
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