THE IMPACTS OF PARTICIPATION BANKS ON REAL ECONOMY: A CASE OF TURKEY

Abstract

This study purposes to examine the asymmetric impacts of participation banks on the real economy in Turkey during the period of 2003:01-2019:08. In this context, the impacts of the funds given by participations banks on real economy are analyzed using Hansen-Seo cointegration test and threshold vector error correction model (TVECM). The findings show that an increase in the funds given by participation banks influences import, export and real sector confidence index in the regime in which the funds’amount is low. However; in the regime in which the funds’amount is high the funds given by participation banks have positive effects on industrial production index, import, export and real sector confidence index.