Öz
The impact of human capital on financial development
has not been studied quite extensively in up-to-date studies. Hence, this
article tries to fill in this gap by exploring the impact of human capital on
financial development in Turkey. Human capital is expected to have a positive
impact on financial development since it reduces information asymmetry. In
addition, it is expected to increase demand for financial services and
instruments. This article investigates the long-run and short-run relationship
between financial development and human capital in Turkey using ARDL approach.
Data are collected over 30-years period (1986-2015). In order to estimate the
relationship between these economic terms, financial development is approximated
using two proxy variables: broad money (% of GDP) and liquid liabilities (% of
GDP). Two proxy variables of financial development are used in order to check
for the sensitivity of the results. In addition, the impact of gross capital
formation (% of GDP) is controlled. The obtained results indicate a significant
positive impact of human capital on broad money (% of GDP) as well as on liquid
liabilities (% of GDP) in both, short- and long-run. Control variable is not
reported to be significant. Pesaran/Shin/Smith ARDL bounds test confirms the
existence of a long-run relationship.
Anahtar Kelimeler
Kaynakça
- Boustan, L., Philippe, A., Hoxby, C.M. and Vandenbussche, Jerome. (2009). The Causal Impact of Education on Economic Growth: Evidence from U.S. Manuscript, http://www.brookings.edu/economics/bpea//media/Files/Programs/ES/BPEA/2009_s pring_bpea_papers/2009_spring_bpea_aghion_etal.pdf.
- Engle, R. F., and C. W. J. Granger (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, Vol. 55(2), pp. 251-276.
- Forgha, N.M., Sama, M.C. and Aquials, N.A. (2016). An Econometric Investigation in to Financial Intermediation, Domestic Investment and Economic Growth in Cameroon, Journal of Finance and Economics, Vol. 4 (1), pp. 1-9.
- Hanushek, E. A. and Woessmann, L. (2011c). Sample Selectivity and the Validity of International Student Achievement Tests in Economic Research. EconomicLetters, Vol. 110(2), pp. 79-82.
- Hassler, U., and J. Wolters (2006). Autoregressive Distributed Lag Models and Cointegration. AllgemeinesStatistischesArchiv, Vol. 90(1), pp. 59-74.
- Hatemi-J, A. and Shamsuddin, M. (2016). The Causal Interaction between Financial Development and Human Development in Bangladesh, Applied Economics, pp, 2-4.
- Jahfer, A. and Abdul Rauf, F. The Relationship between Financial Development, Human Capital Development and Economic Growth in Sri Lanka. 5th Annual International Research Conference- 2016, Faculty of Management and Commerce- SEUSL.
- Kargbo, A.A., Ding, Y. andKargbo, M. (2016). Financial Development, Human Capital, and Economic Growth: New Evidence from Sierra Leone. Journal of Finance and Bank Management, Vol. 4 (1), pp. 49-67.
- Nik, H.A., Nasab, Z.S., Salmani, Y. and Shahriari, N. (2013). The Relationship between Financial Development Indicators and Human Capital in Iran, Management Science Letters, Vol. 3, pp. 1261–1272.
- Outreville, J. F. (1999). Financial Development, Human Capital and Political Stability. UNCTAD Discussion Papers. http://unctad.org/en/docs/dp_142.en.pdf.
- Owings, W.A. and Kaplan, L. (2013), Education as an investment in Turkey’s human capital.https://www.researchgate.net/publication/270218205_Education_as_an_investment_in_Turkey%27s_human_capital
- Pesaran, M. H., and Y. Shin (1998). An Autoregressive Distributed-Lag Modelling Approach to Cointegration Analysis. In Econometrics and Economic Theory in the 20th Century. The RagnarFrisch Centennial Symposium, ed. S. Strøm, chap. 11, pp. 371–413. Cambridge: Cambridge University Press.
- Sehrawat, M., Giri, A.K. (2017). An Empirical Relationship between Financial Development Indicators and Human Capital in Some Selected Asian Countries. International Journal of Social Economics, Vol. 44 (3) No. 3, pp. 337-349.
Öz
The impact of human capital on financial development
has not been studied quite extensively in up-to-date studies. Hence, this
article tries to fill in this gap by exploring the impact of human capital on
financial development in Turkey. Human capital is expected to have a positive
impact on financial development since it reduces information asymmetry. In
addition, it is expected to increase demand for financial services and instruments.
This article investigates the long-run and short-run relationship between
financial development and human capital in Turkey using ARDL approach. Data are
collected over 30-years period (1986-2015). In order to estimate the
relationship between these economic terms, financial development is
approximated using two proxy variables: broad money (% of GDP) and liquid
liabilities (% of GDP). Two proxy variables of financial development are used
in order to check for the sensitivity of the results. In addition, the impact
of gross capital formation (% of GDP) is controlled. The obtained results
indicate a significant positive impact of human capital on broad money (% of
GDP) as well as on liquid liabilities (% of GDP) in both, short- and long-run.
Control variable is not reported to be significant. Pesaran/Shin/Smith ARDL
bounds test confirms the existence of a long-run relationship.
Anahtar Kelimeler
Kaynakça
- Boustan, L., Philippe, A., Hoxby, C.M. and Vandenbussche, Jerome. (2009). The Causal Impact of Education on Economic Growth: Evidence from U.S. Manuscript, http://www.brookings.edu/economics/bpea//media/Files/Programs/ES/BPEA/2009_s pring_bpea_papers/2009_spring_bpea_aghion_etal.pdf.
- Engle, R. F., and C. W. J. Granger (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, Vol. 55(2), pp. 251-276.
- Forgha, N.M., Sama, M.C. and Aquials, N.A. (2016). An Econometric Investigation in to Financial Intermediation, Domestic Investment and Economic Growth in Cameroon, Journal of Finance and Economics, Vol. 4 (1), pp. 1-9.
- Hanushek, E. A. and Woessmann, L. (2011c). Sample Selectivity and the Validity of International Student Achievement Tests in Economic Research. EconomicLetters, Vol. 110(2), pp. 79-82.
- Hassler, U., and J. Wolters (2006). Autoregressive Distributed Lag Models and Cointegration. AllgemeinesStatistischesArchiv, Vol. 90(1), pp. 59-74.
- Hatemi-J, A. and Shamsuddin, M. (2016). The Causal Interaction between Financial Development and Human Development in Bangladesh, Applied Economics, pp, 2-4.
- Jahfer, A. and Abdul Rauf, F. The Relationship between Financial Development, Human Capital Development and Economic Growth in Sri Lanka. 5th Annual International Research Conference- 2016, Faculty of Management and Commerce- SEUSL.
- Kargbo, A.A., Ding, Y. andKargbo, M. (2016). Financial Development, Human Capital, and Economic Growth: New Evidence from Sierra Leone. Journal of Finance and Bank Management, Vol. 4 (1), pp. 49-67.
- Nik, H.A., Nasab, Z.S., Salmani, Y. and Shahriari, N. (2013). The Relationship between Financial Development Indicators and Human Capital in Iran, Management Science Letters, Vol. 3, pp. 1261–1272.
- Outreville, J. F. (1999). Financial Development, Human Capital and Political Stability. UNCTAD Discussion Papers. http://unctad.org/en/docs/dp_142.en.pdf.
- Owings, W.A. and Kaplan, L. (2013), Education as an investment in Turkey’s human capital.https://www.researchgate.net/publication/270218205_Education_as_an_investment_in_Turkey%27s_human_capital
- Pesaran, M. H., and Y. Shin (1998). An Autoregressive Distributed-Lag Modelling Approach to Cointegration Analysis. In Econometrics and Economic Theory in the 20th Century. The RagnarFrisch Centennial Symposium, ed. S. Strøm, chap. 11, pp. 371–413. Cambridge: Cambridge University Press.
- Sehrawat, M., Giri, A.K. (2017). An Empirical Relationship between Financial Development Indicators and Human Capital in Some Selected Asian Countries. International Journal of Social Economics, Vol. 44 (3) No. 3, pp. 337-349.
Ayrıntılar
| Konular | Ekonomi |
|---|---|
| Bölüm | olgu sunumları |
| Yazarlar | |
| Yayımlanma Tarihi | 28 Aralık 2017 |
| Gönderilme Tarihi | 14 Kasım 2017 |
| Kabul Tarihi | 20 Aralık 2017 |
| Yayımlandığı Sayı | Yıl 2017 Cilt: 1 Sayı: 2 |
