• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2014 Vol.5(5): 397-400 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2014.V5.405

Modeling the Relationship between Economic Activity and Bank Loans to Private Sector: A Case of Turkey

Şehnaz Bakır Yiğitbaş and Birgül Cambazoğlu
Abstract—The main aim of this study is to investigate the relationship between deposit banks’ aggregate commercial loans to the private sector, economic activities and interest rates in Turkey over the period from 2003:1 to 2013:2 by utilizing Johansen cointegration and error correction models. The cointegration analysis results show that there is a long-run relationship between bank loans, real gross domestic product and interest rates. Moreover, the Error Correction Model shows the existence of the short-run negative relationship between bank loans and interest rates. In contrast to that the results of the study do not support the existence of the shortrun relationship between bank loans and real gross domestic product.

Index Terms—Loans, GDP, interbank rate, Johansen cointegration test, VECM.

Şehnaz Bakır Yiğitbaş is with the Department of Banking and Insurance, Ayvacık Vocational School of Higher Education, Çanakkale Onsekiz Mart University, Canakkale, Turkey (e-mail: sehnazbakir@comu.edu.tr).
Birgül Cambazoğlu is with the Department of International Trade and Business, Faculty of Business, Adnan Menderes University, Söke-Aydın, Turkey(e-mail: cambirgul@yahoo.com).

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Cite: Şehnaz Bakır Yiğitbaş and Birgül Cambazoğlu, "Modeling the Relationship between Economic Activity and Bank Loans to Private Sector: A Case of Turkey," International Journal of Trade, Economics and Finance vol.5, no.5, pp. 397-400, 2014.

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