The Impact of Housing Loans on Economic Growth in Turkey: Times Series Analysis for 2010-2015 Period

Authors

  • Gülay Selvi Hanişoğlu Beykent University
  • Özlem Arzu Azer Beykent University

DOI:

https://doi.org/10.5195/emaj.2017.127

Keywords:

Economic Growth, Housing Industry, Housing Loan, Turkey, Time Series Analysis

Abstract

Turkish economy has a growing trend after the 2000-2001 economic crises, although ups and downs were experienced in some periods. Some of the important components of Turkish economy are the construction industry and the related housing industry. The construction industry in Turkey has a multiplier effect in the economy since it uses domestic inputs and creates jobs for the labor. Also, the construction sector actors operate overseas and enable inflow of foreign currency to Turkey, thus fostering economic growth. In the recent years, foreign funds and overseas firms have an increasing interest in Turkish construction industry. The Turkish housing industry as one of the leading components of construction industry has also experienced eye-catching developments in the recent years. Definitely, the Turkish housing industry is now much more competitive compared to former years. The global economic crisis of 2008 originated from the housing industry and had devastating effects all over the world. However, the 2008 global economic crisis had relatively lighter effects in Turkey. Parallel to the improvements in construction and housing industries, several financial alternatives exist today. Banks have diversified their credit products considering the needs of consumers. Moreover, the mortgage law going in effect and the mortgage practices becoming popular have contributed to the progress of housing industry. This study analyzed the effect of housing loans and their diversification on economic growth. The research concentrated on the 2010-2015 period, where the impact of 2008 global crisis has diminished.

References

Alhowaish,A.K.,(2015). Causality between the Construction Sector and Economic Growth: The Case of Saudi Arabia, Internatıonal Real Estate Revıew . Vol. 18 No. 1: pp. 131-147.

Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş.(2016). Gayrimenkul ve Konut Sektörüne Bakış.

IMF Conference Paper, (2014). Housing Markets, Financial Stability and the Economy. Min Zhu, Deputy Managing Director, IMF.

Kar,M.,Pentecost,E.J.,(2000). Financial Development and Economic Growth in Turkey: Further Evidence on Causulty Issue, Economic Reserch Paper No: 00/27 Loughborough University.

Kargı,B., (2013). Housing Market and Economic Growth Relation:Time Series Analysis Over Turkey (2000-2012)Volume: 10 Issue: 1 Year: 2013 International Journal of Human Sciences ISSN:1303-5134.

Shahini,I., (2014). How is Mortgage Lending Influencing the Economic Growth in Albenia, International Journal of Science and Engineering Applications, Volume 3 Issue 4, 2014. ISSN-2319-7560 (online).

Stratejik Düşünce Enstitüsü,(2014). Türkiye Konut Sektörü Raporu.

The World Bank (1984). The Construction Industry:Issues and Strategies in Developing Countries. Washington,D.C.

Topaloğlu,M,(2012). An Evaluation of Turkish Mortgage System From the Perspective of Global Economic Crises, China US Business Review,ISSN 1537-1514, July 2012 Vol. 11, No.7,886-895.

TCMB Database.

TUIK Database.

Tsuru, K (2000), “Finance and Growth: Some Theoretical Considerations, and a Review of the Empirical Literature” Economics Department Working Papers, OECD, January, No.228.

Ünalmış , D., (June 2002),The Causality Between Financial Development And Economic Growth: The Case Of Turkey, The Central Bank of the Republic of Turkey, Research Department Working Paper No:3.

Yılmaz. C.,(2014). Banka Kredileri ve Büyüme İlişkisi-21-22 Mart 2014 tarihli Üretim Ekonomisi Kongresi.

Downloads

Published

2017-09-22

Issue

Vol. 7 No. 1 (2017)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.
  2. Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
  3. The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Creative Commons Attribution 4.0 International License or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions:
    1. Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site;
    with the understanding that the above condition can be waived with permission from the Author and that where the Work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license.
  4. The Author is able to enter into separate, additional contractual arrangements for the nonexclusive distribution of the journal's published version of the Work (e.g., post it to an institutional repository or publish it in a book), as long as there is provided in the document an acknowledgement of its initial publication in this journal.
  5. Authors are permitted and encouraged to post online a prepublication manuscript (but not the Publisher’s final formatted PDF version of the Work) in institutional repositories or on their Websites prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Any such posting made before acceptance and publication of the Work shall be updated upon publication to include a reference to the Publisher-assigned DOI (Digital Object Identifier) and a link to the online abstract for the final published Work in the Journal.
  6. Upon Publisher’s request, the Author agrees to furnish promptly to Publisher, at the Author’s own expense, written evidence of the permissions, licenses, and consents for use of third-party material included within the Work, except as determined by Publisher to be covered by the principles of Fair Use.
  7. The Author represents and warrants that:
    1. the Work is the Author’s original work;
    2. the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
    3. the Work is not pending review or under consideration by another publisher;
    4. the Work has not previously been published;
    5. the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
    6. the Work contains no libel, invasion of privacy, or other unlawful matter.
  8. The Author agrees to indemnify and hold Publisher harmless from Author’s breach of the representations and warranties contained in Paragraph 6 above, as well as any claim or proceeding relating to Publisher’s use and publication of any content contained in the Work, including third-party content.

Revised 7/16/2018. Revision Description: Removed outdated link.