Causality Between Economic And Economic Growth

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Financial development can be defined as “the factors, policies, and institutions that lead to effective financial intermediation and markets, as well as deep and broad access to capital and financial services” (WEF, 2011). Causality between firms' financial development and economic growth can be defined as an increase in the quantity of goods and services that can be measured on a gross domestic product basis, which is one of the most important, produced in a given country for a short time (Philip and Peter 2009). The widely used and inclusive dimension of national outputs is a theoretical and empirically controversial issue. In this study, the economic growth rate of the Turkey and the average of exchange rate of Turkey the return…show more content…
Today, it is one of the most important social and economic issues that both developed and developing countries are emphasizing. Economic growth is the increase in the amount of goods and services produced over time in an economy (Steven, 2003). In other words, the economic growth of a country means that the per capita GDP of the country is constantly increasing (Akaydın, 2016). The average growth rate and the annual growth rate are calculated in order to determine the extent to which the economic growth in a country takes place. Economy aims to meet the welfare and needs of the society. But the needs and population of societies is increasing. In such a case, it is necessary to experience increases in production capacity. In order to increase production, it is obligatory to participate in the production of machines, new workforce, natural resources, raw materials. All these factors indicate that economic growth is an important element of social development (editor,…show more content…
For this aim, the methodology of this thesis based upon the correlation to relate the financial statements on the economic growth and exchange rate. This statistical method was used to determine whether there was a linear relationship between the values, and if so, the direction and severity of this relationship. In data and conclusion sections results of the study will be explained briefly and interpreted. DATA ANALYSIS In this research, to investigate the relationship between companies' financial statement on the economic growth and exchange rate, annual data from Turkey is used for the period 2010-2015. Exchange rate was based on dollars. In the Turkish trade, a large part is using dollars. 11 companies in Turkey were selected for the sample. Financial data was obtained from the official sites of each company. Based on data from years of 2009 to 2015.Net sales, operating profit/loss and shareholders' equity were used among financial indicators. Those data were selected to calculate the change in net sales and the ratio of return on equity. Turkish lira was used for the data belonging to the companies. Names of the 11 selected companies: 1. Selcuk Ecza Deposu 2. SASA

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