Ikonomika: Jurnal Ekonomi dan Bisnis Islam, cilt.2, ss.93-102, 2017 (Diğer Kurumların Hakemli Dergileri)
This paper aims to identify the effects of Islamic banking on economic growth and
industrial development in Turkey. For this purpose, quarterly data for the periods
between 2005 and 2016 were taken into the consideration. Additionally, VAR
Granger causality analysis was used in this study. It was concluded that Islamic
banks’ loans do not have a significant effect on the improvement of economy and
industry in Turkey. The main reason for this result is that Islamic banking has a
very low percentage in Turkish banking sector. Thus, it can be said that Islamic
banking in Turkey should be so developed that it can contribute to GDP growth
and industrial development.