An Econometric Analysis on the Relationship Between Profitability and Employment in the Turkish Banking Sector


Abstract: Banks are not only institutions that collecting deposits and granting loan, they also affect almost all the society with their activities anymore. Today, the banking sector is seen as one of the most important actors in the economic system. For this reason, expectations of the society from banking sector have changed in a similar way. Especially in recent years, Turkish banking sector has been criticized in many respects such as high interest rates and limited contribution to employment despite its high profitability level. The banking sector has a relatively limited contribution to total employment compared to other sectors. Reason of this situation is undoubtedly due to the capital-intensive structure that the industry has. In advanced economies, the share of banking sector in total employment is estimated to be between 1% and 10%. In Turkey, banking sector has a great employment potential with its 1% level of the employment ratio. In this study, regression analysis has been carried out regarding the years between 1986 and 2016 by using annual data to determine the relationship between employment in Turkish Banking Sector and profitability of the Banking Sector. According to the results obtained, a statistically significant and positive relationship was found between the banking sector employment volume and its profitability.


Keywords


banking, profitability, employment, time series analysis

Author : Mesut YÜCESAN -Mehmet ÖKSÜZ
Number of pages: 605-621
DOI: http://dx.doi.org/10.29228/TurkishStudies.22726
Full text:
Share:
Alıntı Yap:
Atıf Sayısı: : 1
Turkish Studies-Economics,Finance,Politics
E-Mail Subscription

By subscribing to E-Newsletter, you can get the latest news to your e-mail.