Testing the relationship between financial sector output, employment and economic growth in North Cyprus
Abstract Sound and efficient functioning of financial systems is critical to the economic prosperity of any economy. This paper investigates the tripartite relationship between financial sector output, employment and economic growth in North Cyprus. Using relevant time series data analysis (within t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2019-10-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1186/s40854-019-0151-3 |
| _version_ | 1811325114172571648 |
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| author | Behiye Cavusoglu Saifullahi Sani Ibrahim Huseyin Ozdeser |
| author_facet | Behiye Cavusoglu Saifullahi Sani Ibrahim Huseyin Ozdeser |
| author_sort | Behiye Cavusoglu |
| collection | DOAJ |
| description | Abstract Sound and efficient functioning of financial systems is critical to the economic prosperity of any economy. This paper investigates the tripartite relationship between financial sector output, employment and economic growth in North Cyprus. Using relevant time series data analysis (within the framework of structural breaks and VECM), we found that financial sector output in North Cyprus is sensitive to both internal and external shocks in that its economy is well linked with the global economy, in spite of the political isolation sustained since the bifurcation of Cyprus into North and South. The study further documents evidence of the neutrality hypothesis in the finance-growth nexus. The underlying variables were weakly connected in the short-run. However, economic growth responded to the short-run shocks and handled the equilibrating process of reverting to the long-run trend and thus, the demand following hypothesis is confirmed in the long-run. |
| first_indexed | 2024-04-13T14:27:22Z |
| format | Article |
| id | doaj.art-818af6ded07049a297ccd833c18ab89b |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-04-13T14:27:22Z |
| publishDate | 2019-10-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-818af6ded07049a297ccd833c18ab89b2022-12-22T02:43:16ZengSpringerOpenFinancial Innovation2199-47302019-10-015111110.1186/s40854-019-0151-3Testing the relationship between financial sector output, employment and economic growth in North CyprusBehiye Cavusoglu0Saifullahi Sani Ibrahim1Huseyin Ozdeser2Department of Economics, Near East UniversityDepartment of Economics and Development Studies, Federal University Dutsin-maDepartment of Economics, Near East UniversityAbstract Sound and efficient functioning of financial systems is critical to the economic prosperity of any economy. This paper investigates the tripartite relationship between financial sector output, employment and economic growth in North Cyprus. Using relevant time series data analysis (within the framework of structural breaks and VECM), we found that financial sector output in North Cyprus is sensitive to both internal and external shocks in that its economy is well linked with the global economy, in spite of the political isolation sustained since the bifurcation of Cyprus into North and South. The study further documents evidence of the neutrality hypothesis in the finance-growth nexus. The underlying variables were weakly connected in the short-run. However, economic growth responded to the short-run shocks and handled the equilibrating process of reverting to the long-run trend and thus, the demand following hypothesis is confirmed in the long-run.http://link.springer.com/article/10.1186/s40854-019-0151-3Financial sector outputEconomic growthEmploymentStructural breaks |
| spellingShingle | Behiye Cavusoglu Saifullahi Sani Ibrahim Huseyin Ozdeser Testing the relationship between financial sector output, employment and economic growth in North Cyprus Financial Innovation Financial sector output Economic growth Employment Structural breaks |
| title | Testing the relationship between financial sector output, employment and economic growth in North Cyprus |
| title_full | Testing the relationship between financial sector output, employment and economic growth in North Cyprus |
| title_fullStr | Testing the relationship between financial sector output, employment and economic growth in North Cyprus |
| title_full_unstemmed | Testing the relationship between financial sector output, employment and economic growth in North Cyprus |
| title_short | Testing the relationship between financial sector output, employment and economic growth in North Cyprus |
| title_sort | testing the relationship between financial sector output employment and economic growth in north cyprus |
| topic | Financial sector output Economic growth Employment Structural breaks |
| url | http://link.springer.com/article/10.1186/s40854-019-0151-3 |
| work_keys_str_mv | AT behiyecavusoglu testingtherelationshipbetweenfinancialsectoroutputemploymentandeconomicgrowthinnorthcyprus AT saifullahisaniibrahim testingtherelationshipbetweenfinancialsectoroutputemploymentandeconomicgrowthinnorthcyprus AT huseyinozdeser testingtherelationshipbetweenfinancialsectoroutputemploymentandeconomicgrowthinnorthcyprus |