AN INSPECTION OF THE RELATIONSHIP BETWEEN THE INSURANCE AND BANKING SECTORS IN TÜRKİYE: A TIME-VARYING ASYMMETRIC CAUSAL RELATIONSHIP

Özet

Using yearly data from the Turkish insurance and banking sectors, the current research investigates the relationship between the insurance and banking sectors for the years 1983 to 2020. In contrast to earlier studies in the literature, the time-varying asymmetric causality test was implemented to see how the variables were linked within the different sub-periods. According to the asymmetric Hatemi-j (2012) causality test, it has been discovered that there exists a bidirectional causality between both positive and negative shocks of the total insurance density (TID), broad money supply (BRM) and private sector credit (PSC) variables. Time-Varying test results have shown that there is an asymmetric causality relationship between the data for only a short period and this causality relationship is not permanent.

Abstract

Using yearly data from the Turkish insurance and banking sectors, the current research investigates the relationship between the insurance and banking sectors for the years 1983 to 2020. In contrast to earlier studies in the literature, the time-varying asymmetric causality test was implemented to see how the variables were linked within the different sub-periods. According to the asymmetric Hatemi-j (2012) causality test, it has been discovered that there exists a bidirectional causality between both positive and negative shocks of the total insurance density (TID), broad money supply (BRM) and private sector credit (PSC) variables. Time-Varying test results have shown that there is an asymmetric causality relationship between the data for only a short period and this causality relationship is not permanent.

Yazarlar

Ayyüce MEMİŞ KARATAŞ

Anahtar Kelimeler

Insurance Sector Development, Market Sector Development, Time-Varying Asymmetric Causality

JEL Codes

G10, G20, C50

Yayın Bilgileri

Cilt 3, Sayı 1, 2023 · Sayfa 33-42

DOI: 10.52898/ijif.2023.4

Dosyalar