THE RELATIONSHIP BETWEEN COMMERCIAL CREDIT AND EMPLOYMENT: AN APPLICATION ON TÜRKİYE WITH CAUSALITY ANALYSIS.

Banking sector credits have an important role in the functioning of the monetary transmission mechanism. Policies implemented to determine the money supply affect the credit channel and the real economy through monetary transmission. The sound functioning of the credit channel is closely related to the stable management and the level of development of the financial system. In this study, the relationship between commercial loans provided by the Turkish banking sector and employment is analyzed. The study utilizes monthly unemployment rates and commercial loans provided by the Turkish banking sector for the period 2015:M01-2023:M3. The stationarity levels of the variables are investigated with Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. Granger Causality test and Toda Yamamoto method are used to determine whether there is causality between the variables and if there is a causality relationship, its direction. According to the results of causality analysis, it is concluded that there is no causality relationship between employment data and Turkish banking sector commercial loans. [ABSTRACT FROM AUTHOR]