Türkiye’deki Kira Sertifikası (Sukuk) İhraçlarının Büyüme Üzerindeki Etkisine Dair Ampirik Bir Analiz: 2010-2019

Abstract

What is called Islamic finance today focuses on providing financial services in line with Islamic rules and ethos. Within the scope of Islamic finance developed since the 1970s, sukuk plays an essential role in Islamic banking (participation banking). In recent years, sukuk has also gained significant attention in Turkey. Despite its central role in Islamic banking and the increasing importance attached to it, the effects of sukuk on macroeconomic variables such as economic growth have not been studied in the literature extensively. Due to these reasons, this paper aims to conduct an econometric analysis about the effects of sukuk on Turkey's growth for the period of 2010-2019. The quarterly data is gathered from HMB (Treasure and Finance Ministry), TKBB (Participation Banks Association of Turkey), and MKK (Central Securities Depository of Turkey). ARDL bound test is utilized to examine the long-term effects of bonds and sukuk on economic growth. According to the results, both the governmental sukuk and the participation banking-based sukuk outstanding have statistically significant effects on Turkish growth. While the effect is positive for the former type, it is harmful to the latter. Nevertheless, for both types, the impact stays relatively minuscule. It is recommended that the governmental sukuk outstanding can be increased.

Islamic financial development & economic growth: the emergence of Islamic financial market in Pakistan

“…Studies discussing the causal relationship of Sukuk and economic growth identified that Sukuk market development can play a key role in long-term economic growth. Smaoui and Nechi (2017), Jallow and Joof (2020), Orhan and Tirman (2021), Ledhem (2022) and Sakinah et al (2022) strongly support supply-leading hypothesis. Few recent studies also investigated reciprocal relation; Basyariah et al (2021) examined how the stability of institutions and macroeconomic factors influence the growth and progress of the global Sukuk market.…”

“…In this study, the ARDL cointegration regression technique has been used to assess the long-and short-term cointegration between Islamic financial development and economic growth (Pesaran et al, 2001). Consistent with the studies of Kartini and Milawati (2020), Orhan and Tirman (2021) and Fuadi et al (2022), ARDL is the most preferred model over other co-integration techniques for many reasons. First and foremost, the ARDL model simultaneously estimates the long-and short-run coefficients.…”

Does the Sukuk Issuance in Turkiye Impact on Economic Growth?

“…Although this study did not make a detailed examination, its result is similar to our results. From the study conducted specifically for Türkiye by Orhan & Tırman (2021), which is the only study to compare our study, it was concluded that the issuance of participation banks' sukuk negatively affects economic growth. At first glance, it may seem that this result differs from our findings.…”

“…As a result, it has been emphasized that the said rate is in an increasing trend from 0.013% to 0.544%. At this point, the research conducted by Orhan & Tırman (2021), which can be said the second another study done directly on Türkiye, examined the correlation (through econometric analysis) between sukuk issued by both treasury and participation banks and economic development using quarterly data between 2010-2019. According to the findings obtained from the study carried out using the ARDL model, the effect of sukuk issued by the treasury on economic growth is negative in the first period, but turns positive in the long run.…”

“…However, it can be said that the existence of some types of sukuk that provide fixed and variable returns and the fact that the stated return is indexed to US Dollar funds or equivalently to benchmark interest rates such as LIBOR is one of the main reasons for the criticism brought about the sukuk instrument (Wilson, 2008, p. 173-177). In general, the problems and criticisms in the implementation of sukuk, which are issued in ways similar to the abovementioned operating mechanism, continue to exist as a separate topic of discussion (Orhan & Tırman;2021, p. 234).…”