Structural breaks, financial globalization, and financial development: Evidence from Turkey

Purpose ― Mishkin’s hypothesis suggests that globalization appears to be a vital factor in stimulating the development of financial system. The study examines this for Turkish economy from 1970 2017. It focuses on link between and by integrating economic growth, inflation, natural resource rent as additional determinants into specification. Methods Ng-Perron Vogelsang-Perron unit root tests are used check stationarity variables. cointegration analysis is performed using Hatemi-J ARDL bounds testing procedures. Findings main empirical results show series cointegrated under structural breaks; long run, growth increase while inflation negatively affect development. A unidirectional causality exists At same time, there bidirectional development, rent, Implications findings can present important recommendations policymakers. Originality Very few time-series studies include Turkey’s breaks.