Akademik Veri Yönetim Sistemi
Finans Politik ve Ekonomik Yorumlar Dergisi, sa.661, ss.9-24, 2022 (Hakemli Dergi)
This study aims to examine the relationship between Islamic banking and economic growth utilizing provincial Turkish data. The originality of this study is in employing subnational panel data to provide an efficient way to increase the number of observations and variability in the data while having the advantages like controlling measurement errors and cultural, religious, political heterogeneity across cross-sections. The relationship between Islamic banking and economic growth has been empirically tested by Generalized Method of Moments (GMM) estimators for 81 provinces of Turkey. This study provides evidence that the Islamic banking and economic growth relation is insignificant in the short run. Besides, negative estimates of parameters for Islamic banking loans when accounted for together with the positive estimates for conventional banking, provides evidence that conventional loans are substitutes for Islamic banking loans, rather than complements, in Turkey.