Özet:
Inspired by the finance-led growth hypothesis at the aggregate
level, this study predicates this hypothesis on microfoundations to
investigate the causality between financial development and firm
growth in Turkish manufacturing industry during the period 1989–
2010. To this end, a recently developed non-causality approach
proposed by Dumitrescu and Hurlin is applied. Empirical results in
which heterogeneity and cross-sectional dependence are taken into
consideration reveal the validity of a supply-leading hypothesis for
the overwhelming majority of the subsectors. This result seems robust
across the subsectors, regardless of the financial development proxy.
On the other hand, there is also evidence that the results for the proxy
of firm growth are not uniform across subsectors